Economy

Centre clears two key shipbuilding projects in Gujarat under development scheme

Published On Wed, 15 Jul 2026
Asian Horizan Network
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Centre clears 2 key shipbuilding projects in Gujarat under development scheme
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New Delhi, July 15 (AHN) The Ministry of Ports, Shipping and Waterways (MoPSW) has accorded in-principle approval to two strategic maritime infrastructure projects in Gujarat under the Shipbuilding Development Scheme (SbDS), an official statement said on Wednesday.
The approved projects include a greenfield shipbuilding cluster in Porbandar district and a state-of-the-art ship repair facility at Vadinar in the Gulf of Kutch, the MoPSW said.
The Ministry said the approvals are part of the government's broader strategy under the Maritime Amrit Kaal Vision 2047 to strengthen indigenous shipbuilding and ship repair capabilities, promote investments and enhance India's competitiveness in the global maritime sector.
The greenfield shipbuilding cluster will be developed through the National Shipbuilding and Heavy Industries Park-Gujarat (NSHIP-Gujarat), a special purpose vehicle jointly promoted by the Ministry and the Gujarat Maritime Board.
Spread across nearly 2,000 acres at Kuchhadi in Porbandar district, the integrated maritime manufacturing cluster will house 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 million to 1.5 million gross tonnage (GT), significantly expanding India's domestic shipbuilding capability while positioning Gujarat as a major hub for heavy-tonnage vessel construction.
The second project is a Rs 1,570-crore ship repair facility at Vadinar, which will 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) and has now secured in-principle approval under the Shipbuilding Development Scheme for 25 per cent 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.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the country's maritime sector has undergone a historic transformation over the past 12 years under the leadership of Prime Minister Narendra Modi through landmark reforms, world-class infrastructure and policy support.
Sonowal said the two projects would significantly enhance the competitiveness of India's maritime sector while generating substantial employment, deepening the maritime manufacturing ecosystem and strengthening domestic supply chains.
"These projects reflect the vision of PM Modi towards empowering India's maritime ecosystem and advancing the goals of Atmanirbhar Bharat and Viksit Bharat," he added.
Once operational, it will be capable of repairing commercial vessels of up to 300 metres in length, reducing India's dependence on overseas repair yards.