Centre approves government disinvestment in Dredging Corporation of India

The central government has accorded approval for the strategic disinvestment of the government’s 100 per cent stake in Dredging Corporation of India Limited (DCIL) in favour of four port trusts – the Visakhapatnam Port Trust (VPT), the Jawaharlal Nehru Port Trust (JNPT), the Deendayal Port Trust (DPT) and the Paradip Port Trust (PPT). Following this, the share purchase agreement was signed between the central government and the four trusts on March 8, 2019. VPT has been allotted 5,451,710 shares (constituting 19.47 per cent share of the paid-up share capital), and JNPT, DPT and PPT have been allocated 5,040,101 shares each (each constituting 18 per cent of the paid-up share capital). The government has been able to mobilise funds amounting to Rs 10.49 billion through this strategic sale. With the transfer of shares, management and control of DCIL to the four port trusts, DCIL is expected to enjoy more operational and financial freedom in decision-making, enabling it to take up and execute more works in an efficient way.

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