Dredging Corporation of India (DCI) is in talks with the navy to dredge for a new naval base near Vishakhapatnam. DCI, the sole state-owned company providing dredging services in the country, is looking at business of Rs 3,000 crore if the two sides agree on terms. The project, named Varsha, is likely to be finalised in six months.
"DCI is in discussions for taking up dredging for the naval base and we are looking at a timeline of six months before everything is in place," a senior DCI executive said requesting anonymity.
The base at Rambilli will house conventional as well as nuclear warships. The navy has been using the Visakhapatnam port. A dedicated naval base nearby will decongest the port. DCI's finances are clogged by a list of debtors with major ports owing it Rs 489 crore. DCI is also owed Rs 308 crore for the Sethusamudram project.
"We are looking at Rs 800 crore of dredging costs over three years and another Rs 2,000 crore in developing marine structures. We hope inter-ministerial discussions prove fruitful so that the project can be approved on nomination," a senior DCI executive said.
Project Varsha requires deep water and extensive dredging because the base will house fleets of nuclear submarines and ships. Most of the DCI's 16 dredgers are nearly obsolete. Only five of its dredgers were manufactured after 2009 and the oldest dates back to 1975.
DCI recently lost its monopoly over dredging for major ports with the Kandla and New Mangalore ports choosing private players.
"We had initiated a move to buy two dredgers and charter one out. However, approval is awaited for quite some time now," said the executive quoted above.
The government, as part of its disinvestment drive, plans to sell a 5 per cent stake of its 78.5 per cent holding in DCI. With a new government focus on inland waterways, DCI's monopoly in deep-sea dredging may need to give way to dredging in shallower areas.
