Centre to divest 5 per cent in Dredging Corporation of India.

The government plans to divest 5 per cent in state-owned Dredging Corporation of India, a senior official has told ET.

The shipping ministry will float aCabinet note soon to bring down the government stake in the company to 73.5 per cent from 78.5 per cent.Once the Cabinet is nod is secured, the government will launch an offerfor-sale, the official said.

Dredging Corporation (DCI) is the only public sector company in its sector. Set up in 1976, the company caters mainly to the dredging requirements of 12 major ports and the Indian navy.

The company has a market capitalisation of Rs. 1,269 crore. It clocked revenue of Rs. 168.96 crore and net profit of Rs. 3.23 crore in the quarter to September.

At present, Dredging Corporation of India has 15 dredgers, with an average age of 25 years, and a total dredging capacity of 70 million cubic metres a year. This year, it acquired two new dredgers and expects the delivery of a third in February from the Netherlands.

The dredging company is also in talks with the major ports to part finance the acquisition of more dredgers.

Besides its divestment, the shipping ministry has also floated a Cabinet note for DCI's clearance of payment on account of actual expenditure on dredging of the Sethusamudram channel. Nearly two-third of the company's annual revenue makes up for its dues from Sethusamudram Corporation at Rs 309 crore.

The company had employed all its dredgers in the controversial project in 2006 when TR Balu was the shipping minister.



ET