22 MoUs signed worth Rs 14,000 crore under ‘Make in India’ scheme: DCIL

NEW DELHI : Dredging Corporation has been signing a lot of MoUs under the ‘Aatmanirbhar’ scheme. GYV Victor, MD of the company said that they have signed 22 MoUs worth Rs 14,000 crore under the ‘Make in India’ scheme.

“We signed 22 MoUs worth Rs 14,000 crore with shipbuilder, ship repairers, port trust, and research institutions under ‘Aatmanirbhar Bharat’ – under ‘Make In India’ to be more specific. We have also signed MoU with Cochin Shipyard for the first time to build a trailer suction hopper dredger in Indian shipyard under the ‘Make In India’ concept,” he said.

He said that revenue from the 22 MoUs is spread across 5 years.

“Rs 14,000 crore is spread over next 5 years. We have strategically signed our MoUs with major ports, ship repairer, and shipbuilders and whatever MoUs we have signed with major ports is going to be the revenue generated for the company.

MoU signed with Cochin Shipyard or with ship repairers is going to be the expenditure to build a dredger or to upgrade the dredger,” he said.

Victor also said that the cumulative effect of COVID-19 impacted the earnings in FY21. He also expects some effects of the pandemic to spill over in Q4. However, for FY22, he expects the company to post a revenue of Rs 900-1,000 crore.

“There are many factors why we did not do well in Q2 and Q3. To be more specific, that is the cumulative effect of COVID-19 where we could not move our crew and so the efficiency dropped. Supply chain was also broken and so we could upgrade or repair our dredgers at appropriate time leading to low efficiency which in turn eroded our revenue. That is the reason we saw a hit in Q2 and Q3 which in my opinion will also spill over to Q4. Having said that, the next financial year 2021-2022 we might bounce back to positive numbers,” he said. He also expects to see better profitability in FY22.