The Gujarat government has proposed two new shipbuilding clusters — one in Chhachhi, Kutch, spanning 990 hectares with a 6.75-kilometre waterfront, and another in Kuchhadi, Porbandar, covering 870 hectares with a 7.06-kilometre waterfront. The announcement, expected to be formalised in a new shipbuilding and repair policy after local body elections, comes 16 years after the state’s last such policy in 2010 — and against a backdrop of repeated failed promises in the sector.
The state has set a target of enhancing shipbuilding capacity to 3 million gross tonnage by 2047. A senior official confirmed that three additional locations are being identified for greenfield shipyards. The central government has allocated approximately Rs 28,000 crore from its Rs 70,000 crore maritime fund specifically to promote shipbuilding, aiming to reduce India’s dependency on foreign vessels. But history casts a long shadow. Between 2006 and 2009, the state identified six locations for shipbuilding clusters — Dahej, Ghogha, Bhavnagar, Pipavav, Veraval, and Mandvi — none of which materialised as originally envisioned. More recently, a mega shipbuilding cluster concept at Deendayal Port Trust in Kandla had to be scaled down after receiving only a single bid. ABG Shipyard, once India’s largest private shipyard in south Gujarat, ceased operations around 2019. Alcock Ashdown, a state-run firm, shut down in 2013.
A senior official involved in policy drafting acknowledged that the 2010 policy offered no financial incentives. The new approach will be different: a “plug-and-play” model with common infrastructure and a slew of financial incentives. The optimism is driven by global market conditions. Shipyards in China, Japan, and Korea — the world’s largest ship suppliers — are reportedly saturated and unable to take new orders for the next decade, creating a window for Indian players. From a climate perspective, shipbuilding clusters carry significant environmental implications. Coastal industrial development can impact mangroves, fisheries, and local livelihoods if not carefully sited. The proposed clusters in Kutch and Porbandar lie in ecologically sensitive regions. A 990-hectare facility with a 6.75-kilometre waterfront will require dredging, land reclamation, and intensive energy and water use. The policy must address emission controls, ballast water management, and coastal regulation zone compliance.
Currently, Gujarat has three operational shipbuilding facilities — in Pipavav, Bhavnagar, and Bharuch. The new clusters would represent a massive expansion. But the gap between announcement and execution has historically been wide. Sixteen years without a policy update, multiple failed clusters, and two closed shipyards suggest that ambition alone does not build vessels. The new policy is expected this month. For Gujarat’s coastline and its communities, the question is not whether India needs shipbuilding capacity — it does. The question is whether this time, the government will deliver more than a presentation.
Gujarat Aims 3 Million GT Shipbuilding Capacity By 2047
