New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has given in principle approval for strategic disinvestment of 100 percent government shares in Dredging Corporation of India Limited (DCIL) to consortium of four ports –Vishakhapatnam Port Trust, Paradeep Port Trust, Jawahar Lal Nehru Port Trust and Kandla Port Trust.
Presently the government holds 73.44 percent 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 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. This would further provide opportunities for larger investment in DCIL as integration with ports shall help ineffective vertical linkage in the value chain, it added.
The strategic disinvestment of DCIL shall be undertaken after conducting due diligence exercise by both the entities with the help of Advisors, appointed for the transaction.
