Government fully divests of Dredging Corporation of India

New Delhi : The Cabinet Committee on Economic Affairs (CCEA) on Thursday gave in-principle approval for complete disinvestment in Dredging Corporation of India Ltd (DCIL) to a consortium of four public port trusts.

"The government has decided to fully disinvest its 73.44 per cent stake in the company to a consortium of four ports namely Vishakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust and Kandla Port Trust," Union Minister Ravi Shankar Prasad said.

The approval will facilitate the linkage of dredging activities with the ports, keeping in view the role of the DCIL in expansion of dredging activity in the country as well as potential scope for diversification of ports into third party dredging, an official statement said.

"The co-sharing of facilities between the company as well as ports shall lead to savings for ports," the Finance Ministry said in the statement.

The Ministry said the decision will further provide opportunities for larger investment in DCIL as integration with ports shall help in effective vertical linkage in the value chain.

DCI, established under the administrative control of the Ministry of Shipping in 1976, is a Mini Ratna public sector unit engaged in dredging Indian and foreign sea ports.