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The Union Cabinet on Thursday approved strategic sale of government stake in Dredging Corporation of India Ltd. to consortium of four ports.
The government currently holds 73.44 percent in DCIL.
"Cabinet Committee on Economic Affairs has given in principle approval for strategic disinvestment of 100 percent Government of India's share in DCIL to consortium of 4 ports, namely Vishakhapatnam Port Trust, Paradeep Port Trust, Jawaharlal Nehru Port Trust and Kandla Port Trust," an official tweet said.
The approval will further facilitate the linkage of dredging activities with the ports, keeping in view the role of the DCIL in expansion of dredging activity in the country as well as potential diversification of ports into third party dredging, according to the tweet after the meeting of the CCEA chaired by Prime Minister Narendra Modi.
"The co-sharing of facilities between the company as well as ports shall lead to savings for ports,” according to the tweet. “This would further provide opportunities for larger investment in DCIL as integration with ports shall help in effective vertical linkage in the value chain."
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