Corporation of India Limited (DCIL), a
mini ratna company, which was facing a liquidity crunch till about a month ago
and was unable to pay its salaries on time, appears to be back on its track and
is swinging back to recovery.
A few years ago, the
company faced tumultuous internal conflict, when the government had announced
its disinvestment and after much resistance by the employees, the stakes were picked by four major ports.
The complete holding of DCI of 73.47% were
picked up Visakhapatnam Port Authority (19.47%), Jawaharalal Nehru Port
Authority (18%), Paradeep Port Authority (18%) and Deenadyal Port Authority
(18%) on March 8, 2019 along with the transfer of management and control.
Speaking about the bad
times and its revival, Chairman of Visakhapatnam Port Authority, who is
also the Chairman of DCI, K. Rama Mohana Rao, said the fortunes of a
company like DCI is plummeting down looks mysterious. Dredging is an integral
and continuous operation of port management. By maintaining good relations with
the four major stakeholder ports and by adding a few others, the company can
easily survive and also make profits, he said.
taking charge of the operation after the exit of the earlier managing director,
the first thing we did was to improve
our liquidity by getting funds from the stakeholders and renewing our
contracts and relationship with them,” he said.
“We already got a cash
liquidity of ₹192 crore from Deendayal Port Authority and we are expecting a
few hundred (₹500 crore) more from the rest of the stakeholder ports and also
from Mangalore Port and Cochin Port,” he said.
The DCI has also bagged
a contract from the Cochin Port for dredging with the contract value being
around ₹159 crore.
Another primary aspect taken up is augmenting and modernising its
existing fleet of dredgers.
According to Mr. Rama
Mohana Rao, the total dredge-able material per year in India, across all major
and minor and river ports and inland canals, is around 1.2 million cum, but DCI
is only catering to around 50,000 cum. “…in the next five years the DCI should
be touching the ₹1,500 crore- mark,” he said.
“We are also looking forward for some good business from the State
government, as it plans to come up with a number of small ports,” he said.