Govt approves greenfield shipbuilding cluster in Porbandar

• The Ministry of Ports, Shipping and Waterways (MoPSW) has accorded in-principle approval to a greenfield shipbuilding cluster in Porbandar and a state-of-the-art ship repair facility at Vadinar in Gulf of Kutch.

• 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’.

Greenfield shipbuilding cluster in Porbandar

• 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 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.

Ship repair facility in Vadinar

• The Cabinet Committee on Economic Affairs approved the development of a state‑of‑the‑art ship repair facility at Vadinar on May 5, 2026.

• The Rs 1,570-crore ship repair facility at Vadinar will be jointly developed by Cochin Shipyard Ltd (CSL) and Deendayal Port Authority (DPA).

• It has 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.

• 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. 

Shipbuilding Development Scheme (SbDS)

• In September 2025, the government announced a series of measures aimed at accelerating growth in India’s shipbuilding sector. 

• These initiatives focus on expanding domestic capacity, improving access to long-term financing, and cultivating a globally competitive maritime ecosystem.

• The Shipbuilding Development Scheme (SbDS) was one such initiative.

• It focuses on three major components: brownfield capacity expansion, greenfield cluster development and credit risk coverage. 

• SbDS with a budgetary outlay of Rs 19,989 crore up to March 31, 2036 focuses on long-term capacity and capability creation. 

The scheme provides for:

i) Development of greenfield shipbuilding clusters.

ii) Expansion and modernisation of existing brownfield shipyards.

iii) Establishment of an India Ship Technology Centre under the Indian Maritime University to support research, design, innovation and skills development.

• Under SbDS, greenfield shipbuilding clusters will receive 100 per cent capital support for common maritime and internal infrastructure through a 50:50 Centre-state Special Purpose Vehicle, while existing shipyards will be eligible for 25 per cent capital assistance for brownfield expansion of critical infrastructure such as dry docks, shiplifts, fabrication facilities and automation systems.

• With the creation of modern infrastructure and a skilled workforce, India’s commercial shipbuilding capacity is projected to rise to about 4.5 million gross tonnage per annum by 2047.