Shares of shipping industry Shipping Corp, Cochin Shipyard, Mazagon Dock and Garden Reach Shipbuilders & Engineers (GRSE) rise up to 4% in early deals on Thursday after the Union Cabinet approved a Rs 69,725 crore package to revitalise India’s shipbuilding sector.
The package aims to reduce dependence on foreign ships as part of the government’s plan to regain the country’s maritime power.
GRSE shares climbed 4.22% to Rs 2830 on BSE. Market cap of the firm stood at Rs 31,724 crore.
Cochin Shipyard stock rose 3.7% to Rs 1965.05 with the market cap rising to Rs 51,425 crore. Total 1.16 lakh shares of the firm changed hands amounting to a turnover of Rs 22.50 crore.
Shares of another ship industry player Shipping Corp rose 1.69% to Rs 236.35 in early deals. Market cap of the firm stood at Rs 10,969 crore.
Mazagon Dock shares too gained 1.77% to Rs 2991.80 on BSE. Market cap of the firm stood at Rs 1.19 lakh crore .
Total 0.29 lakh shares of the firm changed hands amounting to a turnover of Rs 8.74 crore
crore.
The package introduces a four-pillar approach designed to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and implement legal, taxation, and policy reforms to create a robust maritime infrastructure.
Under the package, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until March 31, 2036, with a total corpus of Rs 24,736 crore.
“The scheme aims to incentivise shipbuilding in India and includes a Shipbreaking Credit Note with an allocation of Rs 4,001 crore. A National Shipbuilding Mission will also be established to oversee the implementation of all initiatives,” the statement said.