caalley logoThe alley for Indian Chartered Accountants

Shipping ministry gives in-principle approvals for shipbuilding and repair clusters in Gujarat

Jul 15, 2026

Synopsis
Gujarat will soon establish a new shipbuilding cluster in Porbandar. A significant ship repair facility is also planned for Vadinar in the Gulf of Kutch. These projects aim to boost India's maritime infrastructure and capacity. The Vadinar facility will include a long jetty and two large floating dry docks. Both initiatives are part of the Shipbuilding Development Scheme.

The Ministry of Ports, Shipping and Waterways (MoPSW) has given in-principle approvals for a Greenfield shipbuilding cluster in Porbandar and a ship repair facility at Vadinar in Gulf of Kutch. Both these projects in Gujarat are under the Shipbuilding Development Scheme (SbDS).

An official statement said the approvals cover 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.

“The project is designed to build large commercial vessels with an annual production capacity of 1.2 to 1.5 million gross tonnage (GT),” the statement said.

The Rs 1,570-crore ship repair facility at Vadinar, 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) 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.

[The Economic Times]

Don't miss an update!
Subscribe to our email newsletter
Important Updates