City-headquartered Dredging Corporation of India (DCI) has signed separate MoU with Union Territories of Andaman and Nicobar Islands and Daman and Diu to undertake dredging contracts worth Rs.176.1 crore.

The MoU would bolster the financial health of the category-I mini ratna company. It will take up a major contract for dredging to develop a sea route in Baratang islands for movement of passenger and cargo vessels. This will give a big relief as movement of convoys even with escort of security forces is met with assault threats by Jarawas, a particularly vulnerable tribal group.

The dredging assignment in Andamans will involve an amount of Rs.26.1 crore. It will facilitate development of sea route. The dredging will clear a path for a depth of five metres and 200 metres width over a distance of 2 km. The work will be completed before onset of monsoon.

Outgoing Chairman and Managing Director of DCI Captain D.K. Mohanty told The Hindu that the price for Daman and Diu project was estimated at Rs.150 crore. It will lead to introduction of passenger service between Mumbai and Diu and construction of a fishing harbour. The project will take three years for completion.

Soil, hydrology and other investigations will be made by National Institute of Oceanography. Investigations will also finalise the extent of channel alignment. Capt. Mohanty said the Daman and Diu project would involve both capital and maintenance dredging.