Given the Dredging Corporation of India’s (DCI) current low valuation, the Ministry of Shipping (MoS) has dropped enough hints to the effect that it is not in favour of the proposal, by the Disinvestment Department, to sell part of the government’s stake in the PSU as of now.
Maintaining that disinvestment in DCI was not feasible at current valuations of the company, a MoS official said that it had reported a profit of only Rs 39 crore in the last fiscal. While the government has already divested 22.5 per cent of its stake in DCI, the official pointed out that it could now only disinvest up to 25 per cent. Hence, the official, while maintaining that there is not much scope left, emphasises that the time too is not ripe.
It may be recalled that the Department of Disinvestment had suggested to the government to go ahead with divestment in DCI, as part of achieving the target of Rs 40,000 crore in this fiscal by selling stakes and raising fresh equity in PSUs.
Source : Exim News Service - NEW DELHI, Sept. 11
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