Dredging Corp to buy two vessels by 2017

The company targeting to raise its share in maintenance dredging at ports to 80% from the current 60% for which would require new assets

State-run Dredging Corporation of India will invest Rs 1,972 crore to purchase two dredgers by 2017, a top official said today.

"We are targeting to raise our share in maintenance dredging at ports to 80% from the current 60% for which we would require new assets," Chairman and Managing Director D K Mohnaty told reporters here.

The Vishakapatnam-headquartered company has two new dredgers in order which will be delivered by next January and will procure two more at a cost of Rs 1,972 crore during the 12th Plan period ending 2017, he said.

The asset additions will take the total fleet size to 19 dredgers from the 15 at present, he added.

Additionally, the company has earmarked Rs 300 crore for retrofitting two dredgers to avoid the fleet getting old fast, he said, adding it is also in discussion with its client ports, like Kandla and Paradip, to finance dredgers which can then be put to use at the respective ports against a long-term contract.

"I am running at 100% capacity as all the dredgers are deployed," he said.

Mohanty said the company has an order book of Rs 650 crore for 2013-14.

He was here to announce the launch of a Rs 500-crore tax free bond issue which hit the market on March 7. The money raised will be used to finance one of the under-construction dredgers, while the second one is being financed through a foreign currency loan, Mohanty said.