The Centre has granted in-principle approval to two major maritime infrastructure projects—a greenfield shipbuilding cluster in Gujarat's Porbandar district and a large ship repair facility at Vadinar—as part of its plan to position India among the world's leading shipbuilding hubs,
The approvals were granted under the ₹20,000-crore Shipbuilding Development Scheme, a key component of the Maritime Amrit Kaal Vision 2047 aimed at expanding India's shipbuilding and repair capabilities.
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 cluster will be developed through the National Shipbuilding and Heavy Industries Park–Gujarat (NSHIP-Gujarat), a special purpose vehicle (SPV) promoted by the ports, shipping and waterways ministry and the Gujarat Maritime Board.
It is designed to build large commercial vessels with an annual capacity of 1.2-1.5 million gross tonnage, significantly expanding India's domestic shipbuilding capacity.
The 2,000-acre cluster at Kuchhadi in Porbandar will house modern shipyards, ancillary manufacturing units, common infrastructure and capability development centres, the ministry said in a statement.
Vadinar repair hub
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 received approval from the Cabinet Committee on Economic Affairson 5 May 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, the ministry’s statement said.
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 project's financial viability.
Union ports, shipping and waterways minister Sarbananda Sonowal said the two projects will significantly enhance the competitiveness of India's maritime sector.
The Shipbuilding Development Scheme aims to accelerate capacity creation, attract investment, promote indigenous manufacturing, and increase private-sector participation.
Last year, the Centre approved a ₹70,000 crore mega financial package for building infrastructure to attract investment in ship building, repairs and breaking; while also promoting domestic ship ownership and enhancing port infrastructure.
A key part of this package is the ₹19,989 crore Shipbuilding Development Fund that will incentivise development shipping and shipbuilding clusters in the country. The aim of reform initiatives in the shipping sector is to place India among the top 10 Shipbuilding and Ship owning nation by 2030 and Top 5 by 2047.