Cochin Shipyard zooms nearly 6% as PM Narendra Modi inaugurates India’s first hydrogen fuel cell ferry

Shares of Cochin Shipyard Ltd rallied nearly 6% on Wednesday after Prime Minister Narendra Modi inaugurated India's first hydrogen fuel cell ferry. This hydrogen cell ferry is indigenous, designed, and developed by Cochin Shipyard.

PM Modi virtually inaugurated the project from Thoothukudi, Tamil Nadu.

In line with the central government’s target to achieve net zero carbon emission by 2070, hydrogen fuel cell-powered vessels will have zero emission, noise and energy efficiency.

The inauguration of this project will lead the way in using Hydrogen in marine applications as envisaged under the National Green Hydrogen Mission. The project will facilitate the early adoption of hydrogen fuel cell technology in the marine sector, offering a global competitive advantage to India.

The Government of India announced the National Green Hydrogen Mission in January 2023 with a budgetary allocation of ₹19,744 crore. The project aims to make India the global hub for producing, using, and exporting green hydrogen and its derivatives.

Shares of Cochin Shipyard Ltd surged 5.78% to an intraday high of ₹903.45 per share on NSE. The defence PSU stock is up over 28% so far in 2024. Meanwhile, the stock touched a 52-week high of ₹945 on January 31.

The company's order book position stood at approximately ₹21,500 crore as of December 2023. The defence segment of Cochin Shipyard contributed the highest order value at ₹16,064 crore.

This includes post-commissioning work of Indigenous Aircraft Carrier - Phase III for the Indian Navy worth ₹1,047 crore and ₹9,802 crore from NGMV for the Indian Navy. In the commercial segment, ₹2,688 crore came from exports and ₹1,260 crore from the domestic market.

Cochin Shipyard is a miniratna company owned by the Government of India, it is among the biggest players in the country's shipbuilding and ship repair industry.