Cabinet approves 100 % strategic disinvestment of equity in DCIL

Cabinet approves 100 % strategic disinvestment of equity in DCIL

Agency News

New Delhi, Nov 8: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday gave nod to hundred percent strategic disinvestment of its shares in Dredging Corporation of India Ltd to the consortium of four ports namely, Vishakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust and Kandla Port Trust in principle, the Union Minister Ravi Shankar Prasad said here..

Briefing media persons about the cabinet decisions, Mr Prasad said,' at present the Government holds 73.44 percent shares in DCIL. The approval will further facilitate the linkage of dredging activities with the ports, keeping in view the role of the DCIL in expansion of dredging activity in the country as well as potential scope for diversification of ports into third party dredging.'

The co-sharing of facilities between the company as well as ports shall lead to savings for ports. This would further provide opportunities for larger investment in DCIL as integration with ports shall help ineffective vertical linkage in the value chain.

“The strategic disinvestment of DCIL shall be undertaken after conducting due diligence exercise by both the entities with the help of Advisors, appointed for the transaction”. Mr Prasad said.

The decision was taken in the meeting of Cabinet Committee of Economic Affairs, chaired by the Prime Minister Narendra Modi. (UNI)