Centre approves Rs 1,570 crore Gujarat ship repair facility, greenlights two major maritime projects

India's push to become a global maritime manufacturing hub has received a fresh boost with the Union Ministry of Ports, Shipping and Waterways granting in-principle approval to two major infrastructure projects in Gujarat. The projects include a greenfield shipbuilding cluster in Porbandar district and a Rs 1,570 crore ship repair facility at Vadinar in the Gulf of Kutch under the Shipbuilding Development Scheme (SbDS).

The approvals are expected to strengthen India's domestic shipbuilding and ship repair ecosystem, reduce reliance on foreign facilities and support the country's long-term Maritime Amrit Kaal Vision 2047.

What has the government approved?

The ministry has cleared two strategic maritime projects under the Shipbuilding Development Scheme. The approved projects are:

Both projects have received in-principle approval, enabling them to move ahead under the Centre's financial support framework.

Why is the Porbandar shipbuilding cluster significant?

The proposed shipbuilding cluster is designed to become one of India's largest integrated maritime manufacturing hubs. The facility will house modern shipyards, ancillary manufacturing units, shared infrastructure and capability development centres. It is expected to manufacture large commercial vessels with an annual production capacity of between 1.2 million and 1.5 million gross tonnage.

The project will be developed through the National Shipbuilding and Heavy Industries Park Gujarat, a special purpose vehicle jointly promoted by the Ministry of Ports, Shipping and Waterways and the Gujarat Maritime Board.

Once operational, the cluster is expected to substantially increase India's domestic shipbuilding capacity while positioning Gujarat as a leading destination for constructing heavy-tonnage commercial vessels.

What makes the Vadinar ship repair facility important?

India currently sends several large commercial vessels overseas for repairs because of limited domestic infrastructure capable of handling them. The new Rs 1,570 crore facility at Vadinar aims to change that.

The project will be developed jointly by Cochin Shipyard Ltd and Deendayal Port Authority. It had already received approval from the Cabinet Committee on Economic Affairs in May 2026 and has now secured in-principle approval under the Shipbuilding Development Scheme, making it eligible for financial assistance covering 25 per cent of eligible capital infrastructure. The expansion will include:

The facility will be capable of repairing vessels measuring up to 300 metres in length, significantly expanding India's ship repair capabilities and reducing dependence on overseas repair yards.

Vadinar enjoys several strategic advantages that make it suitable for a large-scale ship repair hub.

It has a natural deep draft, allowing large vessels to dock with ease. The location also lies close to major international shipping routes and is situated near important Indian ports, including Mundra Port and Deendayal Port. These factors are expected to improve turnaround times for commercial vessels while attracting more repair business to India.

How do these projects fit into India's maritime strategy?

The approvals form part of the government's broader Maritime Amrit Kaal Vision 2047, which aims to transform India into a globally competitive maritime nation.

The Shipbuilding Development Scheme serves as one of the key policy tools supporting this vision. It seeks to encourage investment in shipbuilding and repair infrastructure, strengthen indigenous manufacturing, create new industrial capacity and increase private sector participation.

By developing both shipbuilding and repair capabilities simultaneously, India hopes to build a more integrated maritime ecosystem that supports manufacturing, logistics and global trade.

What did the government say?

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said India's maritime sector has undergone significant transformation over the past decade through reforms, infrastructure development and policy support.

He said the next phase will focus on making the sector more competitive and efficient so it can play a larger role in building a developed India.

According to the minister, the two Gujarat projects are expected to strengthen domestic manufacturing, generate employment, deepen supply chains and improve India's competitiveness in the global maritime industry.

What could this mean for India's economy?

If completed as planned, the two projects could have a far-reaching impact beyond the shipping sector.

A stronger domestic shipbuilding industry could reduce import dependence, encourage local manufacturing and attract fresh investments into ancillary industries. At the same time, expanding ship repair capacity within the country could lower costs for Indian operators, retain business that currently flows overseas and create new opportunities for skilled employment.

Together, the Porbandar shipbuilding cluster and the Vadinar repair facility represent another step in India's effort to build a self-reliant and globally competitive maritime sector while supporting long-term industrial growth.