Govt Approves financial assistance to ₹1,570-crore Ship Repair Facility at Vadinar, Aims to Reduce Overseas Dependence

Both projects receive in-principle approval under Shipbuilding Development Scheme (SbDS)

Greenfield cluster at Porbandar and brownfield expansion of Cochin Shipyard Ltd at Vadinar expected to strengthen domestic shipbuilding and ship repair towards Atmanirbhar Bharat: Sarbananda Sonowal

The Ministry of Ports, Shipping and Waterways (MoPSW) has accorded in-principle approval to two strategic maritime infrastructure projects, a Greenfield shipbuilding cluster in Porbandar district of Gujarat and a state-of-the-art ship repair facility at Vadinar in Gulf of Kutch, under the Shipbuilding Development Scheme (SbDS), marking a significant step in India’s ambition to emerge as a global shipbuilding hub.

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 Amrit Kaal Vision 2047.

The Union Minister of Ports, Shipping and Waterways (MoPSW), Sarbananda Sonowal said, “Over the last 12 years, under the visionary leadership of Hon’ble Prime Minister Shri Narendra Modi, India’s maritime sector 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, Sarbananda Sonowal 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.