Mazagon Docks shares gained 3% during the early trading hours on 18 October after the company announced signing a deal with the defence ministry to build a training ship for the Indian Coast Guard for a total consideration of Rs 310 crore.

The Ministry of Defence said, “This is the first dedicated training platform with integral helicopter capabilities that will provide basic sea training to 70 Coast Guard and other international under-trainee officers to prepare these budding mariners on the multi-dimensional maritime aspects of Coast Guard life.”

The training ship will have modern and advanced high-tech surveillance and monitoring systems that will provide insight and expertise to the Indian Coast Guard cadets on facing the challenges at sea while ensuring the security of coastline and offshore assets.

The majority of the equipment and systems for the ship will be sourced from indigenous manufacturers, including MSMEs, in an attempt to generate employment for a period of three years or more.

The Ministry added, “While meeting the objectives of ‘Atma Nirbhar Bharat’, the contract would also boost the indigenous shipbuilding capability and help in bolstering maritime economic capabilities.”

At 3:30 pm, Mazagon Docks shares shredded all their earlier gains and closed in the negative at Rs 2,146.85 or 0.32% below its previous close on NSE.