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Dredging Corp sale

New Delhi: The government is going ahead with the strategic sale of the Dredging Corporation of India by seeking bids for a legal adviser, unperturbed by the protests of workers against the move.

The government's entire 73.47 per cent stake sale could fetch about Rs 1,400 crore to the exchequer.

The total turnover of the company in 2016-17 was Rs 599.69 crore. The net worth of the company by the end of the September quarter was Rs 1,547.57 crore.

The department of investment and public asset management (Dipam) has sought bids from legal firms with experience and expertise in mergers and acquisitionsakeovers/strategic divestment to act as legal adviser and assist the government in the process

It had earlier sought bids from firms to value the assets of the Visakhapatnam-based company.

"The government is considering a strategic divestment of 100 per cent paid-up equity capital of the government in DCI (at present 73.47 per cent of the total paid-up equity) through strategic sale with transfer of management control requires the services of a reputed asset-valuer to carry out the valuation of the assets of DCI," a tender document issued by Dipam said.

"The broad scope of work for the asset-valuer is to carry out the market valuation of marine assets (dredgers and ancillary crafts), land and buildings, furniture and fixtures, civil infrastructure like roads, drains, compound wall, etc and plant and machinery including electrical, stock inventory of spares in stores etc on an 'as is where is basis'. The valuation is to be done keeping in view the objective of disinvestment and would be changed if there is a change in the objective."

The entire stake sale in DCI could be part of the government's divestment programme for the financial year and also could help the government meet its fiscal deficit target of 3.2 percent of GDP for the year 2017-18.

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