The Indian government plans to boost goods transportation via inland waterways, which currently account for only 2 percent of total freight movement. To encourage this shift, the government may offer a 35 percent subsidy for cargo owners over three years on national waterways 1, 2, and 16. This initiative aims to relocate approximately 800 million tonne-kilometers of cargo to inland waterways.
The scheme costs around Rs. 100 crore, including Rs. 45 crore for subsidies and Rs. 40 crore for establishing inland vessel services. The incentives target long-haul movements over 300 km and aim to improve the inland water transport sector’s infrastructure and viability. Some stocks can benefit from this initiative and can grab the opportunities to even diversify their revenue stream and improve their supply chain.
Listed below are some of the stocks to benefit from the Government’s subsidy likely to offer 35% for goods transport on inland waterways
Shipping Corporation of India
The Shipping Corporation of India (SCI) is a public sector undertaking established in 1961. It operates under the Ministry of Ports, Shipping and Waterways. They manage a diverse fleet of around 80 vessels, including bulk carriers, tankers, and container ships, catering to both national and international shipping needs. Their business model focuses on three main segments: Liner & Passenger Services, Bulk Carrier & Tankers, and Technical & Offshore Services.
The inland waterway business model focuses on improving cargo transportation efficiency through its subsidiary, Inland & Coastal Shipping Ltd. (ICSL). This model is beneficial to decongest traditional transport routes by promoting the use of inland waterways, which can be cost-effective.
With a market capitalization of Rs. 11,200 Crores, the shares of Shipping Corporation of India Limited closed at Rs. 240.45 per equity share, up 0.71 percent from its previous day’s close price of Rs. 238.75.
Its Revenue from operations increased by 32.75 percent from Rs. 1,093 Crores in Q2FY24 to Rs. 1,451 Crores in Q2FY25, accompanied by profits of Rs. 66 Crores to Rs. 291 Crores.
Container Corporation of India
Container Corporation of India Limited is a public sector undertaking in India that was established in 1988 to facilitate container transportation and handling. They operate a vast network of 66 Inland Container Depots and Container Freight Stations, primarily utilizing rail transport for efficient cargo movement. Their business model focuses on multimodal logistics, integrating rail, road, and port services to provide comprehensive solutions for both domestic and international trade.
With a market capitalization of Rs. 51,607 Crores, the shares of Container Corporation of India Limited closed at Rs. 847 per equity share, up 0.40 percent from its previous day’s close price of Rs. 843.65.
Its Revenue from operations increased by 4.23 percent from Rs. 2,195 Crores in Q2FY24 to Rs. 2,288 Crores in Q2FY25, accompanied by profits of Rs. 368 Crores to Rs. 366 Crores.
JSW Infrastructure
JSW Infrastructure is a part of the JSW Group. It is a leading private sector infrastructure company in India which was established in 1999. They operate as the second-largest commercial port operator in the country, with a cargo handling capacity of 170 million tonnes per annum (MTPA). They specialize in providing environmentally friendly port facilities and maritime services which include cargo handling, storage solutions, and logistics. Their business model focuses on leveraging mechanized operations across ten ports and terminals along India’s coasts and internationally in the UAE.
With a market capitalization of Rs. 68,701 Crores, the shares of JSW Infrastructure Limited closed at Rs. 327.15 per equity share, down 0.03 percent from its previous day’s close price of Rs. 327.25.
Its Revenue from operations increased by 18 percent from Rs. 848 Crores in Q2FY24 to Rs. 1,001 Crores in Q2FY25, accompanied by a profit of Rs. 256 Crores to a profit of Rs. 374 Crores.
Written by Santhosh S
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