Indian government has announced a ₹20,000 crore initiative aimed at enhancing domestic shipbuilding capabilities.
This plan includes the development of four new greenfield shipbuilding and repair hubs over the next six years The initiative is part of the second phase of the Shipbuilding Financial Assistance Policy, designed to meet the increasing demand for ships to transport crude oil, petroleum products, LPG, LNG, and other commodities. Currently, domestic shipyards can produce only 28 of the required 112 ships estimated to cost ₹85,700 crore over the next five years.
To address this gap, the government has identified land parcels of 2,000–3,000 acres each in Odisha (Kendrapara near Paradip Port), Andhra Pradesh (Dugarajapatnam), Gujarat (Kandla), and Tamil Nadu (Tuticorin) for developing the new shipbuilding and repair hubs. In Andhra Pradesh, a shipbuilding and repair cluster is set to be established at Dugarajapatnam in Nellore district. This project, spanning 2,000 acres, will include a greenfield port, four dry docks, outfitting jetties, and a ship-lift facility. The central government is expected to invest ₹3,500 crore, with the state government contributing land as equity. The project aims to attract ₹26,000 crore in investments over five years and create approximately 35,000 jobs.
Additionally, the government plans to establish a ₹25,000 crore Maritime Development Fund to provide long-term, low-cost financial support for the shipbuilding and repair industry. The fund will have a 49% government contribution, with the remainder sourced from ports and the private sector. By 2030, the fund aims to generate up to ₹1.5 lakh crore in investment. The government’s push also includes inviting global shipbuilders to participate in the ‘Make in India’ initiative, aiming to develop the maritime ecosystem and build an indigenous shipping fleet. Discussions are underway with foreign shipbuilding companies, including South Korea’s Samsung Heavy Industries and Hyundai Heavy Industries.
These comprehensive efforts are expected to significantly enhance India’s shipbuilding capacity, reduce dependence on foreign shipbuilders, and position the country as a major global player in the maritime industry.
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