India to establish greenfield shipbuilding cluster, ship repair facility in Gujarat

India plans to set up a greenfield shipbuilding cluster and a ship repair facility in the western state of Gujarat, projects that would advance the country's ambition to play a bigger role in the global shipbuilding sector, the shipping ministry said July 15.

The greenfield shipbuilding cluster will be established in Porbandar district, while the ship repair facility will be set up at Vadinar in the Gulf of Kutch, the ministry said in a statement. Both projects will be part of the Shipbuilding Development Scheme, the ministry said.

"India's maritime sector has undergone a historic transformation through landmark reforms, world-class infrastructure and unprecedented policy support," ports and shipping minister Sarbananda Sonowal said.

"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."

Spread across nearly 2,000 acres at Kuchhadi in Porbandar district, the integrated maritime manufacturing cluster will comprise modern shipyards, ancillary manufacturing units, common infrastructure and capability development centers, the ministry said.

The manufacturing cluster is expected to build large commercial vessels with an annual production capacity of 1.2 million to 1.5 million gross tonnage, expanding India's domestic shipbuilding capacity and positioning Gujarat as a major hub for heavy-tonnage vessel construction, according to the ministry.

Ship repair facility

The second project -- the Vadinar ship repair facility -- is estimated to cost Rupees 15.7 billion ($163 million) and will be jointly developed by Cochin Shipyard Ltd. and Deendayal Port Authority, the ministry said. The brownfield expansion will include a 650-meter jetty, two large floating dry docks, workshops and supporting marine infrastructure, it said.

"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," the ministry said.

Once operational, the Vadinar project will enable domestic repair of vessels up to 300 meters long, boosting India's ship repair capacity and reducing dependence on overseas yards for large commercial vessels.

"These two projects will significantly enhance the competitiveness of India's maritime sector," Sonowal said, adding that India is advancing its ambition to build a modern, efficient and future-ready Indian shipbuilding and ship repair industry that is globally competitive, resilient and trade-friendly.

The oil and gas sector accounts for nearly 28% of India's total trade by volume, making it the largest commodity handled at the country's ports, according to petroleum ministry officials. India meets about 88% of its crude oil demand and 51% of its gas requirements through imports, underscoring the shipping industry's critical role in supporting the country's energy security, petroleum ministry officials have said.

Rahul Kapoor, head of shipping and metal analytics at S&P Global Energy CERA, said India has pledged to secure 1,000 commercial ships over the next decade as part of a national push to expand its shipbuilding industry and maritime sector. New Delhi is also promoting integrated shipbuilding clusters that would bring together a range of activities, from equipment manufacturing to insurance and leasing services, Kapoor said.