DCIL inching forward to script a successful turnaround story

From the brink of privatisation in 2018 due to severe cash crunch to acquisition of 73.47% stake by consortium of four major ports, Dredging Corporation of India Limited (DCIL) is now moving forward to script a spectacular success story in achieving a turnaround.

In a significant development, DCIL signed MoU at the India Maritime Week (IMW)-2025 which concluded in Mumbai on Friday for fleet modernisation at a cost of ₹4,000 crore. IMW also saw MoUs envisaging an investment of ₹39,212 crore by Visakhapatnam Port Authority (VPA) for its modernisation and investment in a mega shipbuilding and repair cluster at Dugarajapatnam in Tirupati district.

The ₹4,000-crore investment by DCIL will focus on its leet modernisation and capacity augmentation to strengthen India’s dredging infrastructure, construction of new dredgers in Indian shipyards and promoting the ‘Make in India’ initiative.

The Ministry of Ports, Shipping and Waterways (MoPSW) has already approved procurement of three new Trailer Suction Hopper Dredgers (TSHDs) out of which DCIL has already placed the order for one 12000 CuM TSHD–DCI Dredge Godavari in March, 2022. The vessel, which was launched on October 18 last in Kochi, is poised to be delivered in July, 2026.

Union Minister for Shipping, Ports and Waterways Sarbananda Sonowal announced that during the IMW they had secured investment proposals to the tune of ₹12 lakh crore to bolster maritime sector as part of 'Atma Nirbar Bharat' mission launched by Prime Minister Narendra Modi.

The proposed disinvestment of DCIL in 2018 for which global bids were sought, would have fetched ₹1400 crore to the Government of India but the apt decision by the Centre led to a combined contribution of ₹1056 crore in March, 2019 by a consortium comprising Visakhapatnam, Paradip, Deen Dayal (Kandla) and Jawaharlal Nehru Port Authorities.

DCIL was set up in 1976 with its headquarters in Visakhapatnam. Despite competition after the sector was opened to private players, it still continues its domination.

Notwithstanding the financial stress it faces from liquidated damages and heavy maintenance due to the aging fleet, the company could put up a good performance in Q4 with strong EBITDA margins and positive cash flow.

There is a proposal to infuse ₹500 crore from the promoter ports to reduce its interest burden by ₹43 crore annually and get clearance to avail a soft loan of ₹1600 crore from the Sagarmala Finance Corporation Limited, a NBFC, for augmenting its capacity and existing infrastructure.

DCIL accounts for nearly 90% of maintenance dredging in major ports. DCIL Chairman Dr. M. Angamuthu told Bizz Buzz that they are firm in playing a key role as the Maritime Amrit Kaal Vision 2047 unveiled by the Ministry of Ports, Shipping and Waterways is firm on achieving 10,000 MTPA by the port sector with a $1 trillion investment.