The Deendayal Port Authority (DPA) has annulled its tender for establishing a 2,000-acre integrated shipbuilding cluster at Kandla, Gujarat.
The decision follows the receipt of a solitary bid from a consortium comprising Pune-based Accurate Industrial Controls Pvt Ltd and Korea Maritime Consultants Co., Ltd (KOMAC), which did not meet the stringent qualification criteria set forth in the tender. The DPA’s tender, which aimed to catalyse India’s shipbuilding capabilities, stipulated that participating entities must have directly designed, executed, and constructed a shipyard capable of producing Very Large Crude Carrier (VLCC) class ships. This requirement effectively excluded joint ventures or consortia unless the primary entity met the criteria independently. Despite allowing joint ventures later in the process, the core qualification conditions remained unaltered, leading to limited participation.
The lone bid from the Accurate Industrial Controls-KOMAC consortium was deemed insufficient, as the Indian partner lacked prior experience in shipbuilding. Consequently, the DPA decided not to open the price bid and plans to reissue the tender with revised qualification criteria to attract a broader range of competent bidders. This initiative aligns with the Indian government’s broader vision to enhance the country’s shipbuilding sector, as outlined in the Union Budget. Finance Minister Nirmala Sitharaman announced a ₹25,000 crore Maritime Development Fund and extended exemptions from Basic Customs Duty on materials used in shipbuilding for an additional ten years starting April 1, 2025. These measures aim to bolster infrastructure, skill development, and technological advancements in the maritime industry.
The DPA had set a provisional reserve price of ₹27,510 per acre per year for the land lease, with the final price to be disclosed during the pre-bid clarification or before the opening of technical bids. The land was to be leased for a maximum of 30 years without any renewal options, requiring bidders to offer a premium over the reserve price to secure the deal. India currently holds less than 1% of the global shipbuilding market but aspires to rank among the top 10 by 2030 and the top 5 by 2047. The establishment of large-scale shipbuilding clusters is pivotal to achieving these targets, especially as the global shipping industry anticipates the construction of over 50,000 ships in the next three decades, driven by a shift towards green technologies to reduce emissions.
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