‘DCI divestment push based on economics’

  • | Friday | 9th February, 2018

"DCI's proposed strategic sale is part of the government's plan of raising Rs 72,500 crore through disinvestment of PSUs in 2017-18. The Centre hopes to raise around Rs 1,400-Rs 1,500 crore through privatisation of DCI. Out of that, Rs 15,000 crore has to come from strategic divestment. Naik underscored the fact that the government has proposed to disinvest a total of 24 CPSEs, including DCI, in the first phase. He further said the company is currently eyeing nearly Rs 650 crore turnover by end of this fiscal.

Visakhapatnam: Is the Dredging Corporation of India ( DCI ) technologically outdated?Replying to an unstarred question number 1106 by Andhra Pradesh parliamentarians Maganti Venkateswara Rao and Rammohan Naidu Kinjarapu in the Parliament on Thursday, the Union ministry of shipping stated that the proposed disinvestment of DCI is not based on the profits or losses incurred by the company. The proposal is based on an economic principle, which clearly states that the Union government should not continue to engage with goverment companies whose competitive markets have come of age and that such entities would perform better in private hands due to various factors such as technology upgradation and efficient management practices, the ministry replied.The ministry further stated that the government-entrusted National Institution for Transforming India (Niti) Aayog will identify Central Public Sector Enterprises (CPSEs) for a strategic disinvestment as per the economic principle.When TOI brought this issue to the notice of DCI's employees, the president of DCI Officers' Association BH Naik said that the equipment used at DCI's currently is state-of-the-art. It is also technologically sound as the company's 16 ships out total 17 have been made in Holland. Only one ship is made in India. Besides, many foreign countries like Dubai, Taiwan, Bangladesh and Abu Dhabi are making use of DCI's service due to its advanced technology, equipment and quality service. He further said the company is currently eyeing nearly Rs 650 crore turnover by end of this fiscal."Presently, one of DCI's ship is working at a port in Bangladesh. We have a couple of work orders from other foreign countries too," Naik told TOI. Naik underscored the fact that the government has proposed to disinvest a total of 24 CPSEs, including DCI, in the first phase."The disinvestment is a political decisions. It is not based on the performance of companies like DCI. We are still unaware of the main motives behind the disinvestment plan. The government should consider the employees' views as well before taking any major steps," Naik alleged.Another DCI employee O Sudhir said that the voluntary retirement scheme (VRS) offer by the government as part of the disinvestment is not a right decision. "This scheme can be useful to the employees who are above 50 years old, but what about the plight of the younger lot?"DCI's proposed strategic sale is part of the government's plan of raising Rs 72,500 crore through disinvestment of PSUs in 2017-18. Out of that, Rs 15,000 crore has to come from strategic divestment. The Centre hopes to raise around Rs 1,400-Rs 1,500 crore through privatisation of DCI.

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