The government has also allowed the Dredging Corporation of India (DCI) to acquire three dredgers at a cost of Rs 1,087 crore from Dutch company IHC Holland Merwede.

The three new trailer suction hopper dredgers have a capacity of 5,000 cubic meters.

DCI will be allowed to avail of external commercial borrowings (ECBs) financing up to Rs 730 crore. DCI, at present, has an installed dredging capacity of 79.85 million cubic metres.

The move is also aimed at giving a fillip to DCI’s fleet enhancement programme as the shipping ministry wants to increase the traffic handling capacity at ports by adding new berths and terminals and enabling bigger vessels to call at major ports.

As per government estimates, the average maintenance and capital dredging demand in India, during the 11th plan, is expected to touch 82.30 mln cubic metres and 133.09 million cubic metres, respectively. At present, there is an average shortage of 78 mln cubic metres dredging capacity.