DCI sets out Rs 3,560 crore fleet expansion plans, pursues shipyard tie-ups for next five years

State-owned Dredging Corporation of India Ltd (DCI) is actively pursuing collaborations with Hindustan Shipyard Ltd and Mazagon Dock Shipbuilders Ltd to secure dry-docking and ship-repair facilities. The initiative is designed to reduce vessel turnaround time and improve fleet availability, a critical need as the company undertakes an ambitious expansion programme.

DCI plans to acquire 11 new dredgers over the next five years, with an indicative investment of Rs 3,560 crore, financed through a mix of equity and debt. The new vessels will include different types and capacities to serve both port and inland waterway applications, ensuring the company is well-prepared for emerging opportunities in deeper channels and larger vessel operations. To support the expansion, the company is also considering a rights issue of approximately Rs 1,000 crore.

Chairman Jasmeet Singh Bindra said that while the existing fleet has served the company well, ageing vessels and dry-docking requirements are affecting availability and utilisation. Managing Director and CEO S Divakar said that by entering into MoUs with shipyards, DCI could reduce downtime by up to two months. He said shipyards are currently operating at full capacity, leading to delays in dry-docking slots, and that with planned tie-ups, yards can schedule repairs in advance, thereby increasing available dredging days. Typically, dredgers require repairs every two-and-a-half years within a five-year cycle, with three to four vessels undergoing maintenance annually, and a collaboration with shipyards could significantly shorten this turnaround time, boosting operational efficiency.

A key element of the fleet renewal programme is the DCI Dredge Godavari, a 12,000-cubic-metre Trailer Suction Hopper Dredger under construction at Cochin Shipyard Limited, expected to join the fleet during FY27. To support this construction, DCI issued secured, unrated, unlisted and redeemable non-convertible debentures of Rs 111.48 crore to Cochin Shipyard Limited in FY26.

The announcement came as DCI marked its Golden Jubilee and 50th Annual General Meeting, held on September 24, 2026, where shareholders approved all three ordinary resolutions, including adoption of audited standalone financial statements for FY26 and the re-appointment of Sushil Kumar Singh as a director. The company reported a return to profitability, with a Profit After Tax of Rs 4.75 crore for FY26, compared with a loss of Rs 27.46 crore in the previous year. Revenue from operations stood at Rs 1,208.33 crore, with total income at Rs 1,214.10 crore, while the operating profit margin improved to 16.84% from 12.33% in the prior year.