Dredging Corp stake sale: Centre executes share purchase pact with four ports

The government Friday announced that it has executed share purchase pact with four ports with regard to the strategic sale of its stake in Dredging Corporation of India (DCI).

The development follows the Union Cabinet in November approving the strategic sale of government stake in DCI to a consortium of four ports.

"The share purchase agreement was executed between GoI (Government of India) and the four ports on March 8, 2019," the shipping ministry said in a statement.

The government, it said, has mobilised a total amount of Rs 1,049 crore by this strategic sale.

With this, the 73.47 per cent holding of the government in DCI has been transferred to the four ports -- Vishakhapatnam Port Trust (19.47 per cent), Paradeep Port Trust (18 per cent), Jawaharlal Nehru Port Trust (18 per cent) and Deendayal Trust (18 per cent).

"With...transfer of shares, the management and control of the company has also been transferred to the four Ports," it said.

According to the share purchase agreement, the new management has been appointed by the purchaser subject to the compliance of statutory requirements, it said.

"With...transfer of the shares and management and control, of the company, it is expected that the company will have more operational and financial freedom in decision making which would enable the company to take up and execute more works in an efficient way," it added.

DCI was incorporated as wholly-owned Government of India Undertaking with the primary objective of catering to the dredging requirements of Indian ports.

DCI was initially incorporated as a 100 per cent government-owned company.

The government disinvested 1.44 per cent, 20 per cent, five per cent and subsequently 0.09 per cent (employee offer) of its share holding in the company in the years 1992, 2004, 2015 and 2016 respectively.

After these disinvestments, the shareholding of the Centre was at 73.47 per cent.