Mazagon Dock, SCI, other shipping stocks sink as Budget 2024 skips PLI, Maritime Fund announcement

In Budget 2024, the government may launch a maritime development fund with a corpus of Rs 15,000 to 20,000 crore to support shipbuilding firms with low-interest loans

Shipping stocks sank up to 5 percent as no significant announcements regarding the sector as made by Finance Minister Nirmala Sitharaman in her Budget 2024 speech.

The only announcement made was that ownership, leasing and flagging reforms would be implemented to improve the share of the Indian shipping industry and generate more employment.

The sector was expecting a revised production-linked incentive (PLI) scheme for manufacturing shipping-grade containers aimed at enhancing the domestic manufacturing capabilities and reducing dependence on imports.

In addition to this, the sector was expecting announcement of Maritime Development Fund, with a corpus of up to 20,000 crore which would provide low-interest loans to shipbuilding firms, facilitating easier access to capital for shipping companies.

Announcements related to the introduction of the green ship scheme to replace oil-guzzling ships with clean vessels, and the extension of the Shipbuilding Financial Assistance Policy (SBFAP) beyond 2026 were eyed.

Shipping stocks including Mazagon Dock, Cochin Shipyard, Garden Reach Shipbuilders, Great Eastern Shipping, and Shipping Corporation of India were trading with losses of up to 4 percent at around 1 pm.

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