The Hindu Business Line : Ministry move to ease participation of Indian cos in dredging projects

A file picture of a dredger of the Dredging Corporation of India pumping out sand through a floating pipe as a part of the beach nourishment project taken up by the Visakhapatnam Port Trust recently.

Mamuni Das
V. Sajeev Kumar

New Delhi/Kochi, June 6 In a move that would make it easier for Indian dredging firms to participate in dredging projects undertaken by major ports, the Shipping Ministry is considering a proposal to take into account dredging experience as a qualifying norm for a port’s dredging works.

Currently, financial turnover of the companies is taken as a pre-qualification norm. This made it difficult for domestic dredging companies with Indian flag dredgers to qualify for projects, the Indian Dredger Owners Association, a lobbying body of domestic dredgers, had alleged, before taking up the issue with the Shipping Ministry.

They had objected to the pre-qualification criteria laid down by the major ports on the ground that they are tailor-made and are so stringent that no domestic dredging companies having Indian flag dredgers will be able to qualify.

The association had suggested that the criterion regarding financial turnover be replaced by specifying the quantity of dredging work executed during the last three years considering that the Indian companies have started executing dredging works only recently.

There have been allegations of cartelisation by foreign dredging firms and quoting of exorbitant rates for dredging works in various ports. While Kochi recently cancelled a tender, JNPT has delayed awarding a dredging contract following high quotes.

COMMITTEE REPORT:

The Ministry’s review is in line with the recommendations of a Committee of Chairpersons of major ports that had been constituted to study various aspects of dredging contracts and make suggestions for changes in the procedure to be followed in inviting tenders.

“The Committee has recommended that ports should decide the extent of experience, or the requisite financial turnover, for various dredging projects based on size of dredging work to be taken up,” according to official sources. This would allow domestic players with relevant experience in dredging, and large international players with large turnovers to compete for projects.

PLAYERS

Domestic dredging companies include Dredging Corporation of India (DCI), Jaisu Shipping and smaller players like Crown Maritime. Dredging International has started an Indian arm named India Seaports Dredging in which Larsen & Toubro had acquired 61 per cent stake. Essar is also procuring 4,500 cubic capacity hopper dredger from China.

The foreign companies are primarily Dutch companies like Van oord, Boskalis, Ham International, Jan de Nul owning dredgers with cutting edge technology. Recently DCI has also procured a dredger from Holland with latest technology which will help to cater to the dredging requirement in the country.

DREDGING REQUIREMENT

An investment of about Rs 5,812 crore is expected to go towards meeting the capital dredging requirement of the country’s major ports over the next five years.

Ports like Kochi, JNPT, Mumbai, Kandla, Paradip, Goa ports require capital dredging. All ports require dredging once in a year except Kochi and Kolkata, which require dredging throughout the year due to high siltation in the channels.