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Government Approves Strategic Disinvestment in Dredging Corporation of India

New Delhi:

Port Wings News Network:

The Government of India had accorded approval for Strategic Disinvestment of 100% GOI shares in DCIL in favour of consortium of 4 ports — Visakhapatnam Port Trust, Paradip Port Trust, Jawaharlal Nehru Port Trust and Deendayal Port Trust (formerly known as Kandla Port Trust). The share purchase agreement was executed between GOI and the four ports on 8.3.2019. With this the 73.47% holding of  GOI in DCI has been transferred to the four ports. The Government has mobilized a total amount of Rs. 1049 Cr by this strategic sale.

With this transfer of shares, the management and control of the company has been also transferred to the four Ports. As per the Share Purchase Agreement, the new management consisting of Directors have been appointed by the Purchasers subject to the compliance of statutory requirements.

Under the new arrangement,  Mr T Krishna Babu, Chairman Visakhapatnam Port Trust, will be Chairman, and Mr Rajesh Tripathi as Managing Director. Besides, Mr. Sanjay Sethi, Chairman Jawaharlal Nehru Port Trust, Mr. Sanjay Bhatia, Chairman, Deendayal Port Trust, and Mr. Rinkesh Roy, Chairman, Paradip Port Trust, will be directors of the new entity. Mr. Anoop Sharma, CMD, Shipping Corporation of India, will be Independent Director.

With this transfer of the shares and management and control, of the Company, it is expected that the Company will have more operational and financial freedom in decision making which would enable the Company to take up and execute more works in an efficient way.

Dredging Corporation of India Limited (DCI) on 29th March, 1976, was incorporated as wholly owned Government of India Undertaking with the primary objective of catering to the dredging requirements of Indian ports.

DCI was initially incorporated as a 100% Government owned Company. The GOI disinvested 1.44%, 20%, 5% and subsequently 0.09% (employee offer) of its share holding in the Company in the years 1992, 2004, 2015 and 2016 respectively.  After these disinvestments, the shareholding of the Government of India is 73.47%. The Company undertakes Capital Dredging, Maintenance Dredging, Beach Nourishment, Land Reclamation, Shallow water Dredging, Project Management Consultancy and Marine Construction for Major Ports, Indian Navy etc.

The Company was declared a Mini Ratna – Category I Public sector enterprise in the year 1999. The Company is a Schedule B Public Sector Enterprises. The Registered Office of the Company is situated at New Delhi. The head office of the company is located on the east coast of India at Visakhapatnam. The project offices are at various places like Kolkata, Haldia, Chennai, Ennore and Kochi.

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