Shares of shipping and shipbuilding firms surged amid expectations of positive announcements for the sector in Union Budget on July 23. The industry expects the upcoming Budget to greenlight the revised production-linked incentive (PLI) scheme for manufacturing shipping-grade containers.
Specific reforms anticipated include increased funding for port modernization and incentives for green shipping practices.
The Centre is likely to revive the PLI scheme for shipping containers, as proposed by the Ministry of Ports, Shipping, and Waterways. This revised scheme, with a reduced budget of Rs 5,000 crore over three years, aims to boost manufacturing after a previous plan was shelved post-cabinet discussions.
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What Budget may deliver
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, reported CNBC Awaaz. The fund will provide loans to shipbuilding firms at cheaper rates with simple conditions.
The Budget could also see the announcement of a green ship scheme under which the government plans to promote pollution-free hydrogen-based vessels on domestic waterways, according to the report.
The Centre is reportedly planning to replace oil-guzzling ships plying on the Indian rivers with clean vessels by providing incentives under its green ship scheme.
The ministry has proposed a joint venture between the Shipping Corporation of India (SCI) and Indian Oil Corporation for the manufacturing of large oil tankers, aiming to reduce dependence on foreign firms, the CNBC Awaaz report added.
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In anticipation of these boosters, shares of Garden Reach Shipbuilders & Engineers (GRSE), Mazagon Dock, Great Eastern Shipping Company, Cochin Shipyard, Shipping Corporation of India, Seamec, Shreyas Shipping and Logistics, and Garware Marine Industries were trading with gains of up to 5 percent.
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