The Government of India signed a shareholders agreement today to sell its 73.47 per cent stake in Dredging Corporation of India Ltd (DCI) to four major port trusts for Rs1,056 crore ($150.7 million), The Hindu Business Line reports.
The decision to sell the government’s entire stake in DCI to government-owned Visakapatnam Port Trust, Paradip Port Trust, Jawaharalal Nehru Port Trust and Deendayal Port Trust will help the National Democratic Alliance (NDA) Government avert political backlash in the forthcoming polls if the dredging firm was to be privatized.
With DCI coming under its direct control, the four port trusts – which together hold 70 per cent of the maintenance dredging market at major ports – are expected to give work to DCI on nomination basis (without a tender) at their own ports.