Chairman: DCI’s Performance to Continuously Improve (India)

The 37th Annual General Meeting of the shareholders of Dredging Corporation of India Limited was held today in Siri Fort Cultural Complex, August Kranti Marg, New Delhi.

“The first and second of the three state of the art trailer suction hopper dredgers of 5500 Cu.M hopper capacity each ordered have been delivered and joined the fleet in December, 2012 and July, 2013 respectively. The third dredger is expected to join the fleet by February, 2014. The addition of these dredgers will help the Company to augment its capacity, improve its efficiency as well as meet the dredging commitments at various ports in an unhindered way. This has enabled the company to phase out one of its existing old dredgers of nearly 46 years of age. DCI dredger V has already been decommissioned. This would also enable the Company to take up refurbishment of the existing aged dredgers so as to enhance their life as well as their efficiency,” stated Capt D.K. Mohanty, Chairman and Managing Director Dredging Corporation of India Ltd. at the ceremony.

“During the year the Company has issued tax-free, secured, redeemable, non convertible bonds to an extent of `50000 lakhs for financing the capital acquisition plans. The public issue of the said Tax free Bonds was in March 2013, and the Company mobilized an amount of `5887.80 lakhs. The amount raised has been utilised for part payment of the third dredger – DCI dredger XXI. The tenure of the bonds is 10 years. The coupon rate is 6.97% p.a. and additional coupon rate of 0.5% for original allottees of retail individual investors category.

“The Bonds are fully secured by way of charge of movable property in terms of the approval of the Ministry of Corporate Affairs, Government of India. In continuation of the steps taken for capacity augmentation, the Company proposes to procure two 9000 Cu.M hopper capacity TSHDs during the current 12th Plan period 2012-2017.

“The Company is sure that with the capacity augmentation the performance will continuously improve over the years to come.”

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Press Release, September 26, 2013