Dredging for Lanka canal may be split up

The government is considering a proposal to split up the dredging contract for different stretches of the Sethusamudram Canal among several companies, rather than awarding the entire dredging work to just one company. This will help in faster completion of the project.

"This may prove expensive, but it would help save time and the associated costs," a shipping ministry official said.

The ministry sources said two options were being considered: floating global contracts to attract private dredging companies or giving the Dredging Corporation of India (DCI) the responsibility, which, in turn, could employ private dredgers.

The government has not yet decided whether the bids will be called by the Tuticorin Port Trust or by the special purpose vehicle floated for the project.

The DCI is also a part of the SPV "" Sethusamudram Canal Private Ltd "" along with Shipping Corporation of India and the five major ports of the eastern coast.