The two projects have been granted in-principle approval under the
Shipbuilding Development Scheme (SbDS), a key component of the Government of
India’s strategy to strengthen indigenous shipbuilding and ship repair
capabilities under the Maritime AmritKaal Vision 2047. The Union Minister of Ports,
Shipping and Waterways (MoPSW), SarbanandaSonowal said, “Over the last
12 years, under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi, India’s maritimesector has undergone a historic
transformation through landmark reforms, world-class infrastructure and
unprecedented policy support. We have laid a strong foundation. The next phase
is to unlock the full potential of India’s maritime industry through minimal
governance, enhanced competitiveness and greater efficiency so that the sector
becomes a key driver of Viksit Bharat.”
The approvals cover the establishment of Greenfield Shipbuilding Cluster
on the western coast and financial assistance for the development of one of the
country’s largest ship repair facilities. The Greenfield Shipbuilding Cluster
will be developed through the National
Shipbuilding and Heavy Industries Park–Gujarat (NSHIP-Gujarat), a Special Purpose Vehicle (SPV) jointly
promoted by the Ministry of Ports, Shipping and Waterways (MoPSW) and the Gujarat Maritime Board.
Spread across nearly 2,000
acres at Kuchhadi in Gujarat’s Porbandar district, the integrated maritime
manufacturing cluster will comprise modern shipyards, ancillary manufacturing
units, common infrastructure and capability development centres. The project is
designed to build large commercial vessels with an annual production capacity
of 1.2 to 1.5 million gross tonnage (GT), significantly expanding India’s
domestic shipbuilding capacity while positioning Gujarat as a major hub for
heavy-tonnage vessel construction.
The second project approved under the scheme is a ₹1,570-crore ship
repair facility at Vadinar, to be jointly developed by Cochin Shipyard Ltd.
(CSL) and Deendayal Port Authority (DPA). The project had earlier received
approval from the Cabinet Committee on Economic Affairs (CCEA) on May 5, 2026,
and has now secured in-principle approval under the Shipbuilding Development
Scheme for 25% financial assistance on eligible capital infrastructure. The
brownfield expansion will include a 650-metre jetty, two large floating dry
docks, workshops and supporting marine infrastructure. Leveraging Vadinar’s natural deep draft,
strategic location along major international shipping routes and
proximity to ports such as Mundra and Deendayal Port, the facility is expected
to emerge as one of India’s premier ship repair hubs. Once operational, it will
enable the domestic repair of vessels measuring up to 300 metres in length,
substantially expanding India’s ship repair capacity while reducing dependence
on overseas repair yards for large commercial vessels. The financial assistance
under the shipbuilding development scheme would enhance the financial viability
of the project.
Adding further,
SarbanandaSonowal said, “These two projects will significantly enhance the
competitiveness of India’s maritime sector. As we continue to build world-class
capacity and advance the vision of Atmanirbhar Bharat, we are creating the
foundation for a modern, efficient and future ready Indian shipbuilding and
ship repair industry that is globally competitive, resilient and trade
friendly. Expected to generate substantial employment, deepen India’s maritime
manufacturing ecosystem, strengthen domestic supply chains and enhance the
country’s competitiveness, these two projects reflect the vision of PM Narendra
Modi towards empowering and enabling our maritime ecosystem to elevate its role
as the catalyst of India’s ascend towards Atmabirbhar and Viksit Bharat.” The Shipbuilding Development Scheme is a
central pillar of the government’s broader shipbuilding policy framework aimed
at accelerating capacity creation, attracting investments, promoting indigenous
manufacturing and increasing private sector participation.