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Dredging Policy for Major Ports

New Delhi: January 19, 2004 20:56 IST

The annual maintenance dredging requirement of major ports in India is around 65 million cubic metres. In addition, there are capital dredging requirements of the major ports. As per the present policy guidelines issued by Ministry of Shipping in the years 2001 and 2002, major ports are allowed to give contracts to Dredging Corporation of India (DCI) on nomination basis or they could go for giving contract to Indian or foreign dredging companies on the basis of competitive bidding process. These policy guidelines are valid till 31.3.2004. However, Kolkata Port (KoPT), being a riverine port, has special requirements of dredging and the present policy has been to meet all the requirements of maintenance dredging of Kolkata Port from DCI, till new dredging policy is finalized.

The Ministry has been considering for sometime review of the existing dredging policy. In this regard, a meeting was held with all the major dredging companies (both Indian and foreign) as well as representatives of major ports in the Ministry of Shipping on 29.8.2003. After listening to the views of dredging companies and major ports, the Ministry had invited further comments of all the stakeholders within a period of 2 months. All the comments received, have been considered, and a meeting was held in the Ministry to consider the dredging policy to be followed by all the major ports beyond 1.4.2004.

It has now been decided that the dredging policy in the major ports beyond 1.4.2004 for a period of 3 years shall be as follows:-

i. The maintenance dredging requirement of Kolkata Port shall continue to be met by Dredging Corporation of India Limited for the remaining period of agreement between DCI and KoPT i.e. till 31.3.2007.

ii. All ports other than KoPT shall invite bids for dredging and DCI shall have the right of first refusal vis-�-vis the other companies, if its rate is within 10% of the lowest technically qualified offer.

iii. This policy would be applicable to both maintenance and capital dredging works.

iv. In respect of dredging contracts already entered into by Major Ports with DCI, the same shall continue till the validity of the contract, whereafter the above guidelines shall be applicable.

v. To ensure level playing field, DG (Shipping) has already modified its guidelines of November, 2002 to allow the first right of refusal to Indian shipping companies vis-�-vis foreign dredging companies (under sections 406 and 407 of the Merchant Shipping Act) only if the bid of Indian companies is within 10% of the lowest offer.

vi. DG Shipping would also be requested to frame suitable guidelines to ensure that permission to charter foreign dredging vessels to minor ports/ private ports in India is given only if competitive bidding process has been followed for awarding the contract and the Indian Shipping Companies have been given the full opportunity to participate in the tender process.

Press Release by: PIB

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