CCEA nod to Rs 1087 cr dredgers from Netherlands

New Delhi, July 20 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today approved purchase of three trailer suction hopper dredgers from the Netherlands at a cost of Rs 1,087 crore.

With a hopper capacity of 5000 cubic metres each, the dredgers will be procured by the Dredging Corporation of India Limited (DCI) from IHC Holland Merwede, an official statement said.

The DCI will be allowed to avail of external financing up to the extend of about Rs 730 crore.

The laon would be sourced either from the domestic market or international market. In case, the DCI resorts to ECB funding, it would seek the necessary approval from the competent authority.

The DCI will pay the balance amount from its internal resources.

Taking into account the present dredging capacity of the DCI (79.85 million cubic metres) and other dredging companies in India, there is an average shortage of 78 million cubic metres dredging capacity.

Therefore, there is an urgent need to augument DCI's dredging capacity to meet the demand and ensure timely implementation of plans for augumentation of port infrastructure in the country.

UNI