GE Shipping shares up 5% ahead of Cabinet meeting today

Shares of Shipping Corporation of India and Great Eastern Shipping Company rose up to 5% on the BSE today amid reports that the Centre may approve the Coastal Shipping Bill 2024 in today’s Cabinet meeting.

The shares of Shipping Corporation surged 4.6% to day’s high of Rs 249.45 while those of Great Eastern Shipping Company went up by 2.5% to Rs 1,312.40 on the BSE.

In an attempt to ease out the rules in the shipping sector and increase business on the ports, the Centre may give a go-ahead to the aforementioned Bill in today’s meeting, as reported by CNBC Awaaz.

The primary motive behind the Bill is to promote more ship lines to enter the Indian ports, thereby resulting in an increased traffic on these ports.

The Bill proposes a few measures that will help to streamline the processes and make operations smoother for the ships entering the Indian ports.

Ships bearing an Indian flag will no longer need licenses to enter ports, streamlining operations while the ships bearing an international flag will have licensing aligned with international standards, ensuring smoother entry into Indian ports.

Additionally, the Bill proposes a strategic plan to enhance coordination between inland waterways and coastal shipping, further optimizing the sector's efficiency.

Also read: Cochin Shipyard shares fall 5% as two-day OFS begins

According to the reports, the Bill will likely be approved by the Cabinet today and will be presented in the Parliament next month, when the sessions resume.

In case the Bill does not face any resistance, it will likely come into force in the next 2-3 months.

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