Domestic dredging cos get policy support

BL reports

Indian dredging companies will enjoy first right of refusal if their rates are within 10 per cent of the lowest valid offers in bids for major port contracts.

The Shipping Ministry's new dredging policy, which is designed to give Indian companies owning Indian flag dredgers an edge while bidding for contracts, states that all 13 major ports "shall invite open competitive bids for dredging works, and Indian companies owning Indian flag dredgers shall have the right of first refusal if the rate is within 10 per cent of the lowest valid offers."

The policy will take effect on April 1 and remain valid for three years. It will apply to both maintenance and capital dredging works, with the exception of maintenance dredging requirements of the Kolkata port, for which separate instructions will apply.

The move comes on the heels of total exemption from import duty for dredgers in Budget 2007-08.