Stocks of shipping companies such as Cochin Shipyard, Garware Marine Industries, Shreyas Shipping and Logistics, VMS Industries and Garden Reach Shipbuilders & Engineers (GRSE) rose up to 2% in early trade today ahead of the presentation of the Union Budget.
The gains were on the back of the recent surge in shipping stocks, which have been bolstered on hopes of incentives for green shipping initiatives, increased funding for port modernisation and likely revival of the PLI scheme for shipping containers.
The Maritime Development Fund, according to some reports, may be allocated between Rs 15,000 crore and Rs 20,000 crore. The fund will support shipbuilding companies with low-interest loans at cheaper rates and uncomplicated conditions. Also, the Harit Nauka scheme is expected to be announced.
Experts believe that the fund could significantly improve development by providing the shipping industry with much-needed access to financial resources such as bank credit and foreign investment. These resources are extremely important for supporting India’s projected trade and economic growth.
The Finance Minister may also announce a green ship scheme, through which the government plans to promote pollution-free hydrogen-based vessels on domestic waterways. Further, the scheme will provide incentives to replace oil-guzzling ships plying on the Indian rivers with clean vessels.
Also, the ministry has proposed a joint venture between the Shipping Corporation of India (SCI) and the Indian Oil Corporation to manufacture large oil tankers, aiming to lower dependence on foreign companies.