Andhra Prades

VPT keen on picking up majority equity in DCIL

The corporate office building of DCIL that is under construction in Visakhapatnam.

The corporate office building of DCIL that is under construction in Visakhapatnam.   | Photo Credit: K_R_DEEPAK

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CCEA has given its in-principle approval for sale of shares in favour of four major ports

The Visakhapatnam Port Trust (VPT) is keen on having majority equity in the Dredging Corporation of India Limited (DCIL).

Strategic reasons

Though the Cabinet Committee on Economic Affairs (CCEA) has given in-principle approval for sale of its equity in favour of the Visakhapatnam, JNPT, Kandla and Paradeep ports on Friday, the VPT wants to have strategic control over the DCIL by buying more equity. This is because both the VPT and the State-owned dredging company have their headquarters in the city. Confirming this, VPT deputy chairman P.L. Haranadh told The Hindu that from the beginning, they had been evincing interest to invest a little more than other ports due to strategic reasons.

VPT has a long-term relationship with DCIL as the latter’s corporate office is located on the premises of the port. DCIL’s new office compound is under construction at Housing Board Colony at a cost of ₹80 crore.

Though the Union Cabinet and the NITI Aayog had in November 2017 approved the strategic sale of the government’s equity of 73.44% after an official meeting here in July, Union Shipping Minister Nitin Gadkari sprang a surprise by announcing the dropping of the plan and to transfer the Government of India’s shares to the VPT, Paradeep and New Mangalore ports. The remaining equity in DCIL had been disinvested in phases before the decision on strategic sale.

However, instead of New Mangalore, the CCEA, chaired by Prime Minister Narenda Modi, cleared another proposal to include JNPT and Kandla ports in forming a consortium along with the Visakhapatnam and Paradeep ports. The capital restructuring of DCIL will be taken up after conducting due diligence exercise with the help of advisers appointed for the transaction. The peaceful struggle, suicide by one of the employees N. Venkatesh and social media campaign led to reversal of the decision by the government.

Employees upbeat

“We are happy with the CCEA’s decision to handover 100% shares of the government to the four major ports for its efficient functioning and expansion. We are assured of a bright future,” DCIL joint general manager and officers’ association leader P.K. Sethi said. The employees, who celebrated the decision by distributing sweets, wanted the transfer of shares at the earliest.