Dredging Corporation of India Ltd (DCI) has firmly reiterated that all future dredger construction will be undertaken exclusively at Indian shipyards, allaying concerns raised by domestic shipbuilders over its recent pact with Colombo Dockyard PLC.
Capt S. Divakar, Managing Director and CEO of DCI, clarified that the Memorandum of Understanding (MoU) signed with the Sri Lankan yard is strictly limited to vessel repair, refurbishment, and dry docking. “Anything we do in building dredgers will be in Indian shipyards only. That’s very clear,” he said, underscoring alignment with the government’s Atmanirbhar Bharat and Make in India initiatives.
Divakar further noted that Colombo Dockyard—51% owned by Mazagon Dock Shipbuilders Ltd—has been engaged through a tender-based process for repairs since 2015. The latest MoU aims to streamline maintenance operations amid growing constraints at domestic facilities.
Repair Bottlenecks Impacting Operations
DCI is currently grappling with significant delays at Indian shipyards, which are fully booked, forcing waiting periods of 30–45 days for dry docking. In some cases, repair timelines quoted by yards have doubled from 45 to 90 days, adversely affecting fleet availability.
“These are capital-intensive assets. If dredgers remain idle for extended periods, operational profitability takes a hit,” Divakar explained, highlighting concerns over productivity losses.
The strategic advantage of Colombo Dockyard’s location—on key sailing routes between India’s east and west coasts—also makes it a practical stop for en route repairs, helping reduce downtime.
Domestic Capacity Gaps Persist
Industry stakeholders, including the Shipyards Association of India, have pointed to infrastructure and capacity limitations in handling timely dredger repairs. Sanjiv Walia, CEO of the association, stressed that while Indian yards possess technical expertise to build advanced trailing suction hopper dredgers (TSHDs), challenges remain in scaling up production speed and technology depth.
With DCI targeting 100% of India’s dredging requirements by 2030, faster induction of next-generation dredgers is critical. However, an ageing fleet and tight delivery timelines have forced interim reliance on foreign contractors and outsourcing for operations and maintenance.
₹4,000 Crore Dredger Plan Anchored in India
Reinforcing its domestic commitment, DCI plans to build 11 dredgers worth ₹4,000 crore within India, as announced during India Maritime Week. The company has ruled out global tenders for new builds, citing strong government support for local shipbuilding.
The Centre’s ₹69,725 crore maritime package, along with subsidies of 15–25% on shipbuilding costs and interest subvention schemes, has further strengthened the case for indigenous construction. “With interest subsidies bringing borrowing costs down significantly, there is no reason to look outside India,” Divakar added.
The move signals a strong push towards self-reliance in maritime infrastructure, even as operational challenges in repair ecosystems continue to test the sector.
