Dredging Corporation shares hit 20% upper circuit. Here’s why – News Air Insight

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Shares of Dredging Corporation of India (DCI) surged 20% on Monday to hit the upper circuit at Rs 888.95 apiece on the BSE. The sharp rally came in response to two major announcements made during the India Maritime Week 2025: the government’s Rs 4,000 crore modernisation initiative for DCI and the signing of 22 Memoranda of Understanding (MoUs) with 14 organisations, cumulatively worth Rs 17,645 crore.

The developments signal a significant scale-up in DCI’s operational scope and infrastructure, underpinned by public-private collaborations and strategic investments. These announcements were made in the presence of senior officials from the Ministry of Ports, Shipping & Waterways (MoPSW), alongside top representatives from major ports and maritime organisations.

Rs 4,000 cr modernisation initiative unveiled

The government announced a Rs 4,000 crore investment to modernise the Dredging Corporation of India Limited (DCIL), aiming to enhance its dredging capacity, efficiency, and global competitiveness.The announcement was made by Prime Minister Narendra Modi during the inauguration of India Maritime Week 2025, held at the Bombay Exhibition Centre in Mumbai.

DCIL operates under a consortium of four major ports—Visakhapatnam Port Authority (VPA), Paradip Port Authority (PPA), Jawaharlal Nehru Port Authority (JNPA), and Deendayal Port Authority (DPA)—functioning under the MoPSW. The modernisation initiative targets fleet enhancement, new vessel construction, adoption of green and digital dredging technologies, and skill development.

The investment includes the procurement of 11 dredgers. DCI has already placed an order for a 12,000 CuM TSHD (DCI DREDGE GODAVARI), launched in October 2025 and expected to be delivered by July 2026.

Orders for additional dredgers are in the pipeline, including one more 12,000 CuM TSHD, one water-injection dredger, one Cutter Suction Dredger, and six beaver dredgers for inland waterway operations.

The initiative also focuses on digitalisation, sustainability, and aligning manpower with global standards through training and upskilling programs. It is part of the broader Maritime India Vision 2030 and Atmanirbhar Bharat 2047 objectives.

MoUs worth Rs 17,000 cr signed with 14 partners

In addition to the modernisation plan, DCI entered into 22 MoUs with 14 prominent entities and ports, totalling Rs 17,645 crore in value. These agreements span dredging, infrastructure development, and capacity building over the next 2–5 years.

The MoUs were signed with key ports like Visakhapatnam, Paradip, Jawaharlal Nehru, and Deendayal, as well as others, including Cochin, Chennai, and Mumbai ports. The agreements cover the construction and repair of dredgers, modernisation of assets, and support for future dredging needs under the Atmanirbhar Bharat initiative.

Notable MoU signatories include Cochin Shipyard (for dredger repairs), NMDC Abu Dhabi (for a joint venture with a foreign partner), Bharat Earth Movers Ltd (BEML) for the construction of inland dredgers, and IHC (for optimising existing dredger capacity). The National Technology Centre for Ports, Waterways & Coasts (NTCPWC) at IIT Chennai also signed an MoU for bathymetric surveys and training development.

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Further, Indian Oil Corporation Ltd (IOCL) is committed to supplying uninterrupted fuel and lubricants to DCI vessels, while Hindustan Shipyard Ltd (HSL) will support dry-docking and repairs.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)



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