The government has reportedly increased the Maritime Development Fund to ₹70,000 crore from ₹25,000 crore.
Indian shipping stocks rallied on Monday following reports that the government plans to scale up the proposed Maritime Development Fund (MDF) to ₹70,000 crore, a significant boost from the ₹25,000 crore initially announced in the Union Budget this February.
Key shipping stocks, including Great Eastern Shipping Co, Mazagon Dock Shipbuilders, Garden Reach Shipbuilders, Shipping Corporation of India, and Cochin Shipyard, closed in the green.
More Funding For Shipping
In February, the Indian government set up the Maritime Development Fund (MDF) to support the country’s maritime sector by providing financial assistance, via equity or debt securities.
According to a report by the Economic Times, the revised corpus has received clearance from the Expenditure Finance Committee (EFC), chaired by the expenditure secretary in the finance ministry, and is now awaiting final approval from the Cabinet. The increased budget will boost shipbuilding, ship repair, ancillary industries, expansion of shipping tonnage, and port-linked infrastructure.
The MDF will follow a blended finance model, with 49% concessional capital from the government, including contributions from state-owned ports, and 51% commercial capital from multilateral, bilateral, and sovereign investors, the report added.
By 2030, the MDF is expected to mobilize ₹1.3 – ₹1.5 trillion in direct and indirect investments and create up to 1.1 million jobs.
India’s Maritime Ambitions
India’s maritime ambitions demand significant investment. Government estimates place funding needs at $885–940 billion by 2047, covering shipping tonnage expansion ($388 billion), green vessels ($260 billion), next-generation ports ($224 billion), shipbuilding and repair hubs ($18 billion), coastal and inland shipping ($8.82 billion), and cruise tourism ($1.65 billion).
The country aims to rank among the world’s top 10 shipbuilders by 2030 and break into the top five by 2047, competing with South Korea, Japan, and China.
Key legislations, including the Merchant Shipping Bill and the Coastal Shipping Bill, along with the Indian Ports Bill, which replaces the century-old Indian Ports Act of 1908, were recently passed in the parliament.
Last month, the Ministry of Ports, Shipping & Waterways (MoPSW) launched the Sagarmala Finance Corporation Limited (SFCL), the country’s first non-banking financial company (NBFC) dedicated to the maritime sector.
Stocks Watch
Most shipping stocks have seen strong buying interest this year. Mazagon Dock Shipbuilders, which closed 0.8% higher at ₹2,739.8, has grown over 23% year-to-date (YTD).
Retail sentiment on Stocktwits remains ‘bearish’. It was ‘neutral’ a week earlier.
Great Eastern closed 0.6% at ₹974, having grown a marginal 0.9% YTD.
Garden Reach closed 3% higher at ₹2,674.3, and has grown a staggering 65.6% YTD. However, retail sentiment on Stocktwits has shifted from ‘bullish’ a week ago.
Shipping Corp of India ended the session at ₹212.85, up 3.47%. YTD gains stand at 1.8%.
Cochin Shipyard rose 1.8% in Monday’s session to ₹1,720.9. The stock has gained nearly 12% YTD.
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