Budget gives better depth to Indian dredging

rt facilities for bringing in larger ships. Consequently, larger movements of cargo and economies of freight should be derived," said, A R Ramakrishnan, CEO of Essar Shipping.  This exemption comes at a time when more international channel deepening companies entering into India even as domestic companies are also getting into this sector.  A giant PSU consortium led by Shipping Corporation of India (SCI) is floating a joint venture company for dredging with various port trusts of the country. Engineering and construction major Larsen & Toubro (L&T) has made a foray into the dredging business by acquiring 61 per cent stake in the Indian entity, International Seaport Dredging , promoted by Belgian dredging multinational, Dredging International NV.  However, small dredging companies are concerned that the international majors will eat into the market as there is no customs duty while big players are poised to hire more dredgers.  K R Kishore, chairman and managing director of state-run Dredging Corporation of India (DCI) says the cost of acquiring dredger will come down with the latest exemption.  "Of course, this help international companies as well. But dredging the need of the hour and ultimately the country will benefit," he says.  DCI, which has 12 own dredger and 4 on hire, is in the process of finalising acquisition agenda to meet the dredging requirements of the country. However, ports are concerned about the infrastructure status accorded by the finance ministry.  "It is not clear that infrastructure status will be available for the ongoing projects. However, the customs duty exemption should bring the dredging cost down," port officials add.