The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has given ‘in principle’ approval for strategic disinvestment of 100 per cent of the government of India’s shares in Dredging Corporation of India Ltd (DCIL) to a consortium of four ports, namely, Visakhapatnam Port Trust, Paradip Port Trust, Jawaharlal Nehru Port Trust and Deendayal Port Trust.
Presently, the government holds 73.44 per cent shares in DCIL.
The approval will further facilitate the linkage of dredging activities with the ports, keeping in view the role of the DCIL in expansion of dredging in the country as well as the potential scope for diversification of ports into third-party dredging. The co-sharing of facilities between the company and ports shall lead to savings for the ports, which would further provide opportunities for larger investment in DCIL as integration with ports shall help in the effective vertical linkage in the value chain.
The strategic disinvestment of DCIL shall be undertaken after due diligence is conducted by both the entities, with the help of the advisors appointed for the transaction.