This has reference to the news item published in the Economic Time dated 6/3/17 regarding sale of 51% stake in Dredging Corporation India by GOI.
It is understood that the management has taken a stand that no official communication has been received in this regard from GOI.
• However, considering the fact that it has been published in reputed newspaper, the news has caused ripples amongst all the employees who feel their future uncertain, threatened and in doldrums. We feel that there cannot be smoke without fire and there some element of
truth in the publication.
• We were established in 1976 and have for the past 41 years shown consistent profit and provided returns to the Company in the form of Dividend and taxes. DCI is amongst the highest service tax payers in visakhapatnam. DCI is the crown of Visakhapatnam and has been the only consistent profit making company in the region.
• DCI maintains the desired depths in ports and is the lifeline for the ports.
• DCI always survived on its own sources and never took any funding from the Government. It purchased dredgers out of its own sources or loans from Bank but never from Government.
• DCI caters to the dredging requirement of all mjor ports and India Navy. DCI recently started inland dredging for inland waterways.
• DCI cash flows have been seriously effected in view of the outstandings from Sethusamudram and some ports.
• DCI has taken up the issue with GOI but the Ministry GOI has been dilly dallying on the issue. The issue of Sethusamudram has been pending with GOI for past 9 years.
• Ministry has been promising that Cabinet note is under process but till now has not seen the light.Same is with regard to other ports.
• The dues have severly effected the operations of the Company.
• To rub on the wound on wound, Ministry has stopped giving works on nomination basis to DCI and forced DCI to participate in tenders against private and international parties who have started undercutting to grab the market thus pushing DCI into severe financial crisis.
• Even in this crisis, the employees of DCI have been working exteremely well to see that the Company shows profits.
• The GOI has disinvested in four instalments in DCI till now : 1991-92 – 1.44%, 2003-04 – 20%, 2015-16 – 5% and 2016-17 – 0.09% (Employees ). The present holding of GOI is 73.47%. The paid up capital of the Company is only Rs.28Cr. The Company has 50000 shareholders.
• Since the last disinvestment happened only in 2015-16 and employee sale in 2016-17, , there is no reason why there should be a strategic sale (reported as 51%) now.
• The employees have never raised any voice in the previous disinvestment but are deeply concerned and agitated over the news of this strategic sale which is more than just a disinvestment. It is the outright sale of the company to outside private parties.
• The GOI should realise that DCI caters to strategic needs and should not be totally thrown open to private parties.
• By this alleged strategic sale, DCI will loose its Government character. The employees career and future of their families will be severely effected.
• DCI is the only listed PSU in Visakhapatnam region and is one of the very few central PSU in the divided Andhra Pradesh.
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