Cabinet Decisions Current Affairs

CCEA approves Strategic Sale of Government Equity in Dredging Corporation Of India

Cabinet Committee on Economic Affairs (CCEA) has approved strategic disinvestment of 100% Government of India’s shares in Dredging Corporation of India Limited (DCIL) to consortium of four ports. Presently, Central Government holds 73.44% shares in DCIL. The consortium of four ports consists of Vishakhapatnam Port Trust (Andhra Pradesh), Paradeep Port Trust (Odisha), Jawahar Lal Nehru Port Trust (Maharashtra) and Kandla Port Trust (Gujarat). The government’s divestment target for fiscal 2018-19 was Rs 80,000 crore and so far it has garnered over Rs 15,000 crore from PSU stake sales.

Significance

Strategic sale of DCIL will further facilitate linkage of dredging activities with ports, keeping in view the role of DCIL in expansion of dredging activity in the country as well as potential scope for diversification of ports into third party dredging. The co-sharing of facilities between company as well as ports shall lead to savings for ports.  This will also further provide opportunities for larger investment in DCIL as integration with ports shall help ineffective vertical linkage in value chain.

Dredging Corporation of India Limited (DCIL)

It is miniratna public sector unit (PSU) engaged in the business of dredging. It does dredging for Indian seaports exclusively. It is involved in capital dredging, beach nourishment, and land reclamation. It was established in March 1976 and is headquartered in Visakhapatnam, Andhra Pradesh. It reports to the Ministry of Shipping. Almost all maintenance dredging in Indian seaports is carried out by DCI. It also occasionally dredges at foreign seaports in countries such as Sri Lanka, Taiwan and Dubai.

Month: Categories: India Current Affairs 2018

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Cabinet approves leasing out six airports through PPP

Union Cabinet chaired by the Prime Minister Narendra Modi has approved leasing out six airports of Airports Authority of India (AAI) for operation, management and development under Public Private Partnership (PPP) in the first phase. This will be done through Public Private Partnership Appraisal Committee (PPPAC).

Union Cabinet also approved constitution of Empowered Group of Secretaries headed by CEO, NITI Aayog with Secretaries of Ministry of Civil Aviation, Department of Economic Affairs and Department of Expenditure to decide on any issue falling beyond scope of PPPAC.

Benefits

PPP in infrastructure projects brings efficiency in service delivery, enterprise, expertise and professionalism apart from harnessing needed investments in public sector. The PPP in airport infrastructure projects has brought world class infrastructure at airports, delivery of efficient and timely services to airport passengers, augmenting revenue stream to AAI without making any investment, etc. of these, for development of Greenfield Airports.

Presently, Delhi, Mumbai, Bangalore, Hyderabad and Cochin airports are being managed under PPP model.PPP airports in India have been ranked among top 5 in their respective categories by Airports Council International (ACI) in terms of Airport Service Quality (ASQ). These PPP experiments have helped to create world class airports and also helped AAI in enhancing its revenues and focusing on developing airports and air navigation infrastructure in rest of the country.

Month: Categories: India Current Affairs 2018

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