DCI dividend at 150 pc; in talks with West Asian Cos for JVs

New Delhi, Sep 28 (UNI) Visakhapatnam-based government-owned shipping major Dredging Corporation of India Ltd (DCI) today declared a dividend of 150 per cent, on equity shares of Rs 10 each in the paid up capital of the company.

The net amount of final dividend payable would be Rs 9 per equity share of Rs 10 each. The 150 per cent dividend includes the 60 per cent declared by company early in February this year.

This was decided by the Board of Directors in the 30th Annual General Meeting (AGM) of the company held today.

Besides, the company also announced its contribution of Rs 5.50 crore towards equity for the Special Purpose Vehicle (SPV) of the Sethusamudram Ship Channel Project (SSCP).

The project-specific joint venture for joint participation for SSCP has been finalised with Dredging International and joint biddings have been submitted for work 'C' and Work 'A&B' of Sethusamudram Ship Channel Project.

''Discussions are on hand with companies in Bahrain for formulating joint venture companies for carrying out dredging operations in Middle East Countries,'' a company statement said.

The company is also looking for identification of JV partners for joint participation in some major capital dredging projects in India.

The company, which was awarded capital dredging work of the E3-E4 stretch in the Palk Strait area adjoining Bay of Bengal on a nomination basis in June 2005, has so far dredged 6.09 million cubic meters out the total 13.5 million cubic meters to be dredged.

''We will complete the balance work by June 2007,'' it added.

The company has also signed a Memorandum of Understanding (MOU) with the Government of India for the 15 consecutive year, for 2006-07, and expects a ''very good'' rating for the previous year.

Among the major initiatives the company has taken to meet future dredging requirements in India and abroad, are acquisitions of new dredgers and capacity expansion.

In order to meet the immediate market demand and capacity requirement, the company plans to charter dredgers through the Trans Chart.

''A Charter Party agreement has been signed for the charter of a 4700 Cum hopper capacity trailer suction hopper dredger on July 6, 2006. The Dredger has been delivered to the company on September 7, and is presently working at th Sethusamudram Ship Channel Project,'' the statement added.

The company has also placed provisional orders for chartering of two more dredgers of 5000 Cum hopper capacity and is to charter more dredgers through Trans Chart after establishing the technical suitability of the vessels.

The order with Mumbai's Mazagaon Dock Ltd placed in October last year, for the procurement of one number Cutter Suction Dredger of 2000 cum solids per hour capacity, is expected to be delivered by December 2007, the company said.

Tendering action is on hand for procurement of 5000 Cum hopper capacity Trailer Suction Hopper Dredgers and for other vessels, as well as for the procurement of one number Backhoe dredger and two numbers self propelled hopper barges for carrying out dredging works in front of berths and jetties and for consolidated strata. This cannot be carried out by TSHDs or CSDs.

PriceWaterHouse Coopers was appointed to bench mark DCI against reputed dredging companies and to assist in preparing DCI's Corporate Plan for the period 2005-06 to 2009-10.

This exercise is expected to be completed by the end of this year.

Established in 1976, DCI helps to ensure continuous availability of the desired depths in the shipping channels of the major and minor ports, Indian navy, fishing harbors and other maritime organisations. It further serves the nation in capital dredging for creation of new harbors, deepening of existing harbors or maintenance dredging for the upkeep of the required depths at various ports along the 5,700 Kms coastline of India.

DCI is an MoU signing company with the Government of India, and is one among the Public Sector Undertakings, in which the Government has disinvested it's share holding.

UNI RA PV VC1404