Posted on January 16, 2018
ET reported that the government may shelve its plan to sell Dredging Corporation of India to private players, after the shipping ministry made a case against privatisation of this company. The ministry is of the view that given the massive projects that the government is undertaking to make inland waterways navigable and build and modernise ports, a state-run company could provide it more cost-effective dredging solutions than a private player. The ministry has proposed that the company be merged with a government port inistrative control.
A top shipping ministry official said that “The importance of Dredging Corporation increased manifold after a dedicated budget of INR 2,000 crore for inland waterways was earmarked and also because of the increased spending on the Sagarmala project.”
The official said that “Engaging private companies for dredging is a time-taking and costly affair.” Dredging Corporation with experience in deep-sea dredging could find opportunities in river dredging as well, this official added. The government had already started the process to sell its entire stake – 74.38% at the end of September, according to BSE data. The Cabinet has cleared the proposal and the government invited transaction advisers for the sale, with a January 29 deadline to submit their bids.
But the official said the government was also looking at other options. “We’re finding out ways that how this company can be absorbed or merged with any of our profitmaking units or ports for better synergy,” the official added.
Road transport and shipping minister Mr Nitin Gadkari is expected to take up the issue soon with the finance ministry and Niti Aayog. In an earlier interview with ET, Mr Gadkari said that he wasn’t supportive of the idea of selling government-owned companies that were making a profit.
Mr Gadkari said that these companies could do better than now if their management is handled professionally. The government has budgeted to raise INR 72,500 crore this fiscal year through disinvestment.
Source: Steelguru
