State-owned Dredging Corporation of India plans ₹3,560-crore fleet expansion and ship-repair tie-ups

State-owned Dredging Corporation of India Ltd (DCI) is exploring dry-docking and ship-repair facilities in collaboration with greenfield ports and shipyards. The initiative aims to reduce vessel turnaround time and improve fleet availability as the company pursues an ambitious expansion programme.

According to the company's annual report for 2025-26, DCI is holding discussions with Hindustan Shipyard Ltd and Mazagon Dock Shipbuilders Ltd to explore potential collaborations. Jasmeet Singh Bindra, Chairman of DCI, noted in the report that while the existing fleet has served well, ageing vessels and dry-docking requirements can impact availability and utilisation.

As ports develop deeper channels to accommodate larger vessels, dredging companies face a growing need for greater capacity and deeper-draft capability. To address this, DCI has initiated a programme to acquire 11 new dredgers over the next five years. The expansion, which will cover various types and capacities for port and inland waterway applications, involves an indicative investment of ₹3,560 crore and will be financed through a combination of equity and debt.

In addition to fleet expansion, DCI is examining longer-duration dredging contracts to provide greater visibility for capacity planning and investments. In line with Ministry directives, the company is considering contracts with longer tenures to improve alignment between fleet capacity, business visibility, and capital allocation.

A key component of DCI's fleet renewal programme is the DCI Dredge Godavari, a 12,000-cubic-metre Trailer Suction Hopper Dredger currently under construction at Cochin Shipyard Ltd with technical collaboration from Royal IHC. Launched in October 2025, the vessel is expected to join DCI's fleet during 2026-27.

S Divakar, Managing Director and Chief Executive Officer of DCI, stated that memoranda of understanding (MoUs) with shipyards will help increase available dredging days and reduce idle time spent waiting for dry-dock slots. With public sector yards currently operating at full capacity, tie-ups could potentially reduce downtime by about two months. Typically, a dredger requires repairs every two and a half years, and DCI currently sends three to four craft for repairs annually on a rotation basis out of its 13-vessel fleet.

During the previous financial year, DCI also secured several new contracts, including five-year maintenance dredging contracts for the Mumbai Harbour Channel and JN Port Channel covering 2025-26 to 2029-30, along with maintenance work for channels and basins at Cochin Port. Additionally, the company won an order at VOC Port in Thoothukudi to remove spillage, loose materials, and disturbed seabed using a Backhoe Dredge.

"DCI's strategic focus on securing long-term maintenance contracts alongside a major capital expenditure plan highlights a disciplined approach to asset management in the maritime sector. By proactively addressing operational bottlenecks such as dry-docking delays through structured partnerships with public sector shipyards, the company is effectively mitigating asset downtime. This operational efficiency, combined with debt-equity financing for fleet renewal, provides a stable foundation for scalable growth and better capacity utilisation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes