Cabinet approves sale of govt stake in Dredging Corp, leasing of 6 airports using PPP model

The Cabinet Committee on Economic Affairs was chaired by the Prime Minister Narendra Modi .

New Delhi, Nov 8 : The Cabinet Committee on Economic Affairs (CCEA) on Thursday has approved strategic disinvestment of 100% Government of India’s shares in Dredging Corporation of India Ltd (DCIL) to consortium of four ports namely, Vishakhapatnam Port Trust, Paradeep Port Trust, Jawahar Lal Nehru Port Trust and Kandla Port Trust.

The Cabinet Committee on Economic Affairs was chaired by the Prime Minister Narendra Modi .

Speaking to the media, Law Minister Ravi Shankar Prasad also stated that the cabinet has given in-principle approval for the development, operation and management of six airports using the Public-Private Partnership (PPP) model, among other measures. The six airports to be leased are Ahmedabad, Jaipur, Lucknow, Guwahati, Thiruvananthapuram and Mangaluru.

Currently, the Government of India holds 73.44% shares in Dredging Corporation of India Limited. 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.

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