The government has finally bitten the bullet. It has cleared the sale of its entire stake of 73.47 per cent in profit making Dredging Corporation of India (DCI).

Also under discussion are five more PSUs — STC, MMTC, Kamajaar Port, RCF and Hindustan Copper, which could be put on the block in the next round.

According to sources, the Union cabinet on Wednesday approved the entire stake of the government in the miniratna firm DCI. At current share prices, the sale could fetch the government about Rs 1400 crore.

The market seemed to have an inkling about the impending sale as DCI shares saw a massive surge of 20 per cent to reach Rs 669.95 a piece after hitting the upper circuit level at the close of trading hours on the BSE.

The government has set a record disinvestment target of Rs 72,500 crore in this financial year, of which Rs 15,000 crore is to come through strategic sales. It is racing against time to achieve the target. The total disinvestment proceeds during the current financial year 2017-18 is Rs 30,185.67 crore as on November 1.

The gap of about Rs 42,500 crore within a period of five months needs some quick decisions and actions, sources said, adding that there will be quick actions on this front.

While they confirmed the DCI stake sale, there was no announcement from the government due to the model code of conduct ahead of assembly elections in the two states. 

But the market sensed the clearance as stocks of DCI and STC started flying high on the market and rose over 20 per cent during the day.
STC India, too, hit the upper circuit of 20 per cent at Rs 219 riding on the 15-fold jump in trading volumes.

Shares of MMTC, Shipping Corporation of India (SCI), Hindustan Copper and Rashtriya Chemicals & Fertilizers were too up between 7 –12 per cent.

The DCI is under the administrative control of the shipping ministry involved in maintenance dredging, capital dredging, beach nourishment, land reclamation, shallow water dredging, project management consultancy and marine construction.

A core group of secretaries on disinvestment, headed by the Union cabinet secretary, had earlier approved the sale of DCI. The government think tank Niti Aayog too had favoured strategic disinvestments of the miniratna firm.

Earlier, the cabinet had approved a new mechanism to speed up strategic disinvestment led by finance minister Arun Jaitley to oversee, accelerate the process for CPSEs.

The cabinet had last year given an in-principle approval for strategic sale in public sector companies, including Bharat Earth Movers Ltd, Scooters India Ltd, and Pawan Hans Ltd.

It had also given an in-principle approval for sale of Salem, Durgapur and Bhadrawati units of Steel Authority of India Ltd and Nagarnar Steel Plant of NMDC.

As the new fiscal year is about to start, the government is back with its strategic divestment drive as NITI Aayog has recommended the stake sale in 12 central public sector enterprises (CPSEs).

The companies listed so far include National Textile Corporation, Fertilisers and Chemicals Travancore, Hindustan Antibiotics, Scooters India and Hindustan Fluorocarbons.

The government will push for closure and strategic sale of loss-making CPSEs, sources said.

For FY18, the government hopes to raise Rs 72,500 crore by divesting stakes in public sector firms. Compared to the revised estimate of Rs 45,500 crore for FY17, this is an increase of around 60%.

Pushing its agenda, the Air India divestment process has also gained momentum, as the Centre has finalised the list of transaction and legal advisors for the stake sale process.