PSU majors bag new contract orders from Ministry of Defence, stocks in focus on Dec 21; check details

livemint.com:

Mazagon Dock Shipbuilders and Cochin Shipyards have bagged new contract orders from the Ministry of Defence on Wednesday, December 20. The defence PSU majors will remain in focus in tomorrow's session (December 21) as the announcement of the order receipts came after market hours on Wednesday.

Mazagon Dock Shipbuilders said it will be constructing and supplying six vessels to the Indian Coast Guards (ICG) for about ₹1,600 crore while Cochin Shipyard said in its regulatory filing that it has signed a deal with the Ministry of Defence for a value of ₹488.25 crore. The company said it has signed a contract with the acquisition wing of the Ministry of Defence for the construction and delivery of six next-generation offshore patrol vessels.

Out of the six vessels being procured, four would replace the existing aging offshore patrol vessels and the other two would augment the ICG's fleet. The first vessel will be delivered in 41 months (three years five months) from the date of release of advance payment by the Ministry of Defense and subsequent vessels at intervals of five months.

"The acquisition of these major ICG platforms is aimed to boost the ICG's capability and reinforces the increased focus of the Government towards maritime security," the defence ministry said in a statement. "These modern and high-tech ships will play a critical role in enhancing surveillance, law enforcement, search and rescue, maritime pollution response, and other important capabilities including humanitarian assistance," it said.