A Cabinet note is likely in a fortnight, paving the way for three of the top 12 major ports in India to pick up stake in state-run entity Dredging Corporation of India (DCI), a top official has said.
The Dredging Corporation of India Limited (DCI), a state run entity under the administrative control of the Ministry of Shipping, provides dredging services to the major ports of the country and is a pioneer organisation for maritime development.
"A Cabinet note is likely soon for pick up of equity stake in DCI by three of the 12 major ports in the country," a top official who did not wish to be quoted told PTI.
The official said the ports that may pick up stake include Paradio Port Trust (PPT), Visakhapatnam Port Trust (VPT) and New Mangalore Port Trust (NMPT).
The pick up of the stake, if Cabinet approves it, will be based on the availability of surplus funds with the ports, the official added.
Earlier on June 18, 2018, a meeting of the heads of the major ports was held, chaired by Shipping Secretary Gopal Krishna in which the issue of divestment proposal of the DCI was discussed.
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Three of the ports had evinced interest in acquiring shares of the DCI, given the availability of surplus fund lying with them.
The government had earlier said that a committee to understand the modalities with regard to proposal of acquiring shares of DCI by three ports had been constituted.
Currently, the government holds 73 per cent stake in the company.
DCI is involved in maintenance dredging, capital dredging, beach nourishment, land reclamation, shallow water dredging, project management consultancy and marine construction.
India has 12 major ports: Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia). They together handle approximately 61 per cent of the country's total cargo traffic.