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India’s Shipbuilding and Ship-repair sector is set for a major capacity expansion as four brownfield projects receive In-Principle Approval under SbDS

NEW DELHI : India’s shipbuilding and ship-repair sector is set for a major capacity and capability expansion, with four brownfield projects receiving In-Principle Approval (IPA) under the Government’s Shipbuilding Development Scheme (SbDS).

The approvals mark another important step in India’s efforts to modernise existing shipyards, expand indigenous shipbuilding and ship-repair capacity, and create globally competitive maritime manufacturing hubs. The projects span Gujarat, West Bengal and Andhra Pradesh, strengthening shipbuilding capabilities across key maritime regions.

The four projects that have received IPA are:

Cochin Shipyard Limited (CSL) – Vadinar, Gujarat: A new ship-repair facility at Vadinar, being developed in partnership with Deendayal Port Authority (DPA), with an estimated project cost of ₹920 crore. The facility is expected to strengthen India’s ship-repair ecosystem and enhance repair capacity on the western coast.
Swan Defence & Heavy Industries (SDHI) – Pipavav, Gujarat: A ₹504-crore Phase-I infrastructure upgrade, including the installation of major equipment such as Goliath and ELL cranes, aimed at enhancing the yard’s handling, construction and project execution capabilities.
Titagarh Naval Systems Limited (TNSL) – Falta, West Bengal: A ₹516-crore new shipyard project at Falta, designed to deliver approximately 10–12 vessels of up to 160 metres in length per year, adding significant shipbuilding capacity in eastern India.
MAT Marine – Kakinada, Andhra Pradesh: A ₹105-crore shipbuilding and ship-repair infrastructure project, including slipways capable of supporting vessels of 1,000+ GT, further strengthening maritime industrial infrastructure along India’s eastern coast.

Together, these four projects represent ₹2,045 crore of investment approved in-principle, contributing to the broader ₹8,261-crore brownfield expansion drive currently underway to transform and upgrade India’s existing shipyards.

The In-Principle Approval is an important project-stage milestone, indicating the Government’s commitment to the project framework and eligibility. However, it does not constitute a financial commitment. Capital assistance of up to 25% of the approved project cost, subject to a ceiling of ₹1,500 crore per yard, will be sanctioned only at the Final Approval stage following independent appraisal of the Detailed Project Report (DPR).

Once projects receive Final Approval, the eligible capital assistance will be released in four milestone-linked tranches of 15%, 30%, 35% and 20%, ensuring that support remains linked to project implementation and progress.

The four projects form part of a much larger pipeline of ₹10,000 crore-plus in prospective investments, signalling growing industry confidence in India’s shipbuilding and ship-repair sector.

The brownfield expansion programme is expected to deliver multiple strategic benefits, including:

Modernising existing shipyards with advanced infrastructure, equipment and technology.
Increasing domestic shipbuilding and ship-repair capacity to meet growing demand.
Enhancing productivity and competitiveness of Indian shipyards in the global market.
Generating skilled employment and supporting ancillary maritime industries.
Reducing dependence on overseas shipbuilding and repair facilities.
Strengthening India’s maritime manufacturing and supply-chain ecosystem.
Supporting the development of a self-reliant and future-ready shipbuilding industry.

The initiatives are closely aligned with the objectives of Maritime Amrit Kaal Vision 2047, which envisages a stronger, more self-reliant and globally competitive Indian maritime sector.

With brownfield projects advancing across major maritime states, the Shipbuilding Development Scheme is emerging as an important catalyst for unlocking capacity at existing yards, attracting investment, encouraging technology and infrastructure upgrades, and positioning India as a competitive global destination for shipbuilding and ship repair.

Expanding capacity. Building capability. Strengthening India’s maritime manufacturing base for the future.

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