Dredging Corporation of India Ltd. signs MoU with Government of India

Dredging Corporation of India (DCI) has signed a Memorandum of Understanding for the financial year 2016-17. The MoU was signed by Shri Rajive Kumar, Secretary, Shipping and Shri Rajesh Tripathi, Chairman & Managing Director, Dredging Corporation of India Ltd, in New Delhi.

The MoU broadly consists of the performance evaluation parameters and targets for Dredging Corporation of India Ltd. for the ensuing year. The MoU will be reviewed by the Ministry on a regular basis and the performance of the PSU would be evaluated and ratings awarded at the end of the financial year. The targets agreed in the MoU are in line with the aggressive growth plans of DCI for making foray's internationally in line with the Ministry of Shipping's ambitious plans.

DCI has posted Very Good performance during the last financial year (2015-16) as against Good for the year 2014-15, despite very difficult market conditions. In the year ended 31st March 2016, DCI posted a turnover of Rs.676 crores. The Profit Before Tax (PBT) and Profit After Tax (PAT) figures are Rs.83 crores. and Rs.80 crores respectively, representing an increase of 28% and 29 % respectively over the previous year.

DCI MUTLICAT an ancillary vessel has been added to the fleet of DCI. DCI has further placed order for an inland cutter suction dredger which will join the fleet very shortly. This would facilitate the Company to take up inland dredging works once again after a long gap. In continuation of the steps taken for capacity augmentation of its core dredging activity, the detailed Project Report is being prepared for higher capacity trailing suction dredgers.

During the year under review, maintenance dredging contracts were executed for Kolkata Port, Haldia, Kandla, Cochin Port Trust, Ernakulam, RGPPL-Dabhol and NST and its approaches of VPT. Capital Dredging Contracts were executed at Kandla Port, Kamarajar Port and Visakhapatnam Port. The works were executed either under the existing contracts or renewal of the contracts entered into with the Ports etc., during the previous years or new contracts entered into during the year.

As per the targets set in the MoU for 2016-17 that was signed today, DCI is to achieve a turnover of Rs.770 crores. The target for operating profit is Rs.65 crores for 2016-17 as against the actual of Rs.45 crores for 2015-16. Further in the current year 2016-17, finalization of a contract is in the final stages for deployment of a dredger outside India and this will enable the company to earn income in foreign exchange for the first time in many years.

Powered by Capital Market - Live News