Current Affairs

CCEA approves Strategic Sale of Government Equity

Cabinet Committee on Economic Affairs (CCEA) has approved strategic disinvestment of 100% Government of India's shares in Dredging Corporation of India Limited (DCIL) to a consortium of four ports.
CCEA approves Strategic Sale of Government Equity
  • Presently, Central Government holds 73.44% shares in DCIL.
  • The consortium of four ports consists of Vishakhapatnam Port Trust (Andhra Pradesh), Paradeep Port Trust (Odisha), Jawahar Lal Nehru Port Trust (Maharashtra) and Kandla Port Trust (Gujarat).
  • The Government's divestment target for fiscal 2018-19 was Rs 80,000 crore and so far it has garnered over Rs 15,000 crore from PSU stake sales.

What is the Significance of this stake sale?

  • Strategic sale of DCIL will further facilitate linkage of dredging activities with ports, keeping in view the role of 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 company as well as ports shall lead to savings for ports.
  • This will also further provide opportunities for larger investment in DCIL as integration with ports shall help ineffective vertical linkage in value chain.

About Dredging Corporation of India Limited (DCIL):

  • It is a miniratna public sector unit (PSU) engaged in the business of dredging. 
  • It does dredging for Indian seaports exclusively.
  • It is involved in capital dredging, beach nourishment, and land reclamation.
  • It was established in March 1976 and is headquartered in Visakhapatnam, Andhra Pradesh.
  • It reports to the Ministry of Shipping. 
  • Almost all maintenance dredging in Indian seaports is carried out by DCI.
  • It also occasionally dredges at foreign seaports in countries such as Sri Lanka, Taiwan and Dubai.

Question:

Q. Cabinet Committee on Economic Affairs (CCEA) has approved strategic disinvestment of 100% Government of India's shares in which PSU to a consortium of four ports?
a. Seaways Corporation of India Limited (SCIL)
b. Marine Corporation of India Limited (MCIL)
c. Dredging Corporation of India Limited (DCIL)
d. None of the above
CCEA approves Strategic Sale of Government Equity CCEA approves Strategic Sale of Government Equity Reviewed by Inderjeet Virdi on November 11, 2018 Rating: 5

No comments: