Dredging Corporation updates on AGM

Dredging Corporation of India Ltd (DCI) has informed BSE about press note issued in connection with the 30th Annual General Meeting (AGM) of the Company held on September 28, 2006:

1. Sethusamudram Ship Channel Project:
- The Company has made a contribution of Rs 5.50 Crores towards equity for the Special Purpose Vehicle, Sethusamudram Corporation Ltd.
- The Company has been awarded capital dredging work of E3-E4 stretch in Palk Strait area adjoining Bay of Bengal on nomination basis in June 2005. Out of 13.5 Million cubic meters to be dredged, The Company so far dredged around 6.09 million cubic meters and will complete the balance work by June 2007 within the scheduled period of completion.
- The Company also entered into Consortium agreement with Dredging International and participated in tender for balance work of Sethusamudram Ship Channel Project viz., Work "C" - Palk Bay, Palk Strait and Work "A & B" - Adams Bridge.

2. Memorandum of Understanding (MOU)
The Company has signed Memorandum of Understanding (MOU) with Government of India for the year 2006-07 for the 15 consecutive year and expects rating "Very Good" for the year 2005-06.

3. Major Initiatives of the Company to meet Future Dredging Requirements in India and Abroad:
The Company has initiated number of measures to maintain its market in India, expand its market outside India, improve quality and upgrade employee skills, improve safety management systems etc. The following are some of the important measures being initiated by the Company in this direction:

3 (a) Acquisition of New Dredgers / Addition of Capacities:
- Long term Acquisition programme has been drawn up taking into account the market demand in the next 10 years and action in this direction has been initiated.
- Mean while in order to meet immediate market demand and to augment the capacities to the extent possible, the Company proposes to charter dredgers through Trans Chart. A Charter Party agreement has been signed for charter of a 4700 Cu.M hopper capacity trailer suction hopper dredger on July 06, 2006. The Dredger has been delivered to the Company on September 07, 2006 and is presently working at Sethusamudram Ship Channel Project.
- The Company has also placed provisional orders for chartering of two more dredgers of 5000 CUM hopper capacity and is to charter more dredgers through Trans Chart after establishing the technical suitability of the vessels.
- Order has been placed with Mazagaon Dock Ltd., Mumbai in October 2005 for procurement of one number Cutter Suction Dredger of 2000 cu.m solids per hour capacity and the vessel is expected to be delivered by December 2007.
- Tendering action is on hand for procurement of 5000 Cu.M hopper capacity Trailer Suction Hopper Dredgers and for other vessels.
- Action is also on hand for procurement of one number Backhoe dredger and two numbers self propelled hopper barges for carrying out dredging works in front of berths and jetties and for consolidated strata, which cannot be carried out by TSHDs or CSDs.

3 (b). JV / SPVS:
- Project specific JV for joint participation for SSCP has been finalized with Dredging International and joint biddings have been submitted for work "C" and Work "A&B" of Sethusamudram Ship Channel Project.
- Discussions are on hand with Companies in Bahrain for formulating joint venture companies for carrying out dredging operations in Middle East Countries.
- The Company is also looking for identification of JV partners for joint participation in some major capital dredging projects in India.

3 (c). Bench Marking and Corporate Plan:
PWC was appointed to bench mark DCI against reputed dredging companies and to assist in preparing DCI’s Corporate Plan for the period 2005-06 to 2009-10. This exercise is expected to be completed by the end of this year.

3 (d). Human Resources Development:
- Continuous efforts for the over all development of Human Resources are being made both on shore and floating establishments through Management development and training activity, covering majority of employees on both the establishments.
- Training Programmes on ISM, Internal Auditors Course, Reservation Policy, Auto-Cad, Computer Awareness, Hypackmax Seminar were held at Visakhapatnam.
- 10 Officers were deputed for Hydraulics Survey Training in Naval Training School at Goa. Programming Logistics Control (PLC) for Electrical officers etc, were organized.
- Apart from the above, employees were nominated to external training programmes also conducted by reputed training institutes.
- ISO / ISM Awareness and Quality Auditors Programmes were organized for both shore and floating personnel. Under ISPS Code certified Floating Officers were deputed for Ship Security Officer (SSO) Course and Company Security Officer (CSO) Course.
- 5 Officers (1 from Floating and 4 from shore) were deputed to Holland for undergoing training in Dredging Technology at TID, Holland. 4 Officers were deputed to participate in the dredging days seminar 2005 sponsored by CEDA at Ahoy Rotterdam, Netherlands.
- 21 Officers were exposed to the awareness programme on implementation of the Right to Information Act, 2005 conducted by IIPM, Kolkata.

3 (e). Health, Safety and Environment Management:
- A separate HSE Department has been set up to monitor and implement Health, Safety and Environmental objectives of the Company.
- The Company is complying with requirements of ISM and ISPS and all its dredgers were issued with Safety Management Certificates (SMCs) and the document of compliance was issued to the Company in the year 2002 and is being endorsed every year. Similarly, International Ship Security Certificates (ISSCs) valid up to 2009 have been obtained for all the dredgers.
- Efforts are on hand to obtain ISO certification which is expected during the year 20O6-07.

Source : Equity Bulls

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