The Dredging Corporation of India Limited (DCIL) has secured an annual maintenance dredging contract from the Cochin Port Authority.

What Happened: The maintenance dredging contract encompasses dredging of the Cochin Port’s outer channel, approach channel, ICTT Basin, LNG Basin Channels (Ernakulam Channel & Mattancherry Channel), and other areas of Cochin Port. This operation is vital for the port’s functionality, facilitating smooth and efficient maritime trade activities. The contract, valued at ₹156.50 crores, is for the fiscal year 2024-25 and includes a provision for a one-year extension.

Last month, the company secured an order worth ₹2,015.88 crore from the Syama Prasad Mookerjee Port Authority (SMPA) for five years. This order involves maintenance dredging in the Hooghly Estuary, particularly in the shipping channel leading to Haldia Dock.

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The government has divested all its stake in the company along with transfer of control and management. It is now jointly owned by several port authorities: the Visakhapatnam Port Authority, Deendayal Port Authority, Jawaharlal Nehru Port Authority, and Paradip Port Authority. As of the end of the March quarter, the Visakhapatnam Port Authority holds a 19.47% stake, while the other three authorities each own an 18% stake.

The Life Insurance Corporation of India (LIC) also holds a 4.39% stake in Dredging Corporation. Ace investor Mukul Agrawal also owns a 1.8% stake in the company.

Price Action: Dredging Corporation’s share price was up 5% to close at ₹1,340.05 on Thursday.

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