GRSE, Mazagon, SCI: Shipping stocks on investor radar amid shipbuilding policy package buzz

Shipbuilding stocks such as Cochin Shipyard, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders were trading mixed in Wednesday's trade amid expectations that the Cabinet led by Prime Minister Narendra Modi would announce a policy package to help make local shipbuilders compete with world leaders in this business.

As per an ET report, the policy package would include a revamped shipbuilding financial assistance scheme, a Rs 25,000 crore Maritime Development Fund, credit notes for ship recycling and a Rs 20,000 crore budget to promote shipbuilding clusters, it quoted officials as saying.
Shipping Corporation of India Ltd gained 2.44 per cent to Rs 228.65. Cochin Shipyard Ltd was down 0.32 per cent at Rs 1,878.60. Mazagon Dock Shipbuilders Ltd advanced 0.41 per cent to Rs 2,952. Garden Reach Shipbuilders & Engineers Ltd added 0.60 per cent to Rs 2,696.70. GE Shipping was down 2.09 per cent at Rs 1,020.25. 

Under the proposed revamped Ship Building Financial Assistance Policy 2.0, financial support for ship construction will be set at 15 per cent for standard ships valued up to Rs 100 crore, 20 per cent for advanced and specialized vessels exceeding Rs 100 crore, and 25 per cent for green ships, applicable over a 10-year period, the ET report suggested.

It quoted sources as saying fund disbursement under the scheme will be linked to using at least 40 per cent local content of the total ship value in Indian yards. The 40 per cent threshold reflects the current domestic ecosystem for raw materials and parts, and is expected to encourage investments in units producing shipbuilding equipment within the country, the ET report suggested.