Beyond rhetoric, the Modi government has been actively boosting India’s economic growth in self-reliance by giving a much-needed revamp to the domestic shipbuilding and repair industry. In a major boost to India’s ambition of becoming Atmanirbhar in ship repair capacity, the Centre’s Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, approved the development of the Vadinar Ship Repair Facility in Gujarat on 5th May 2026.
Vadinar Ship Repair Facility: Modi government’s fresh addition to the efforts to boost the expansion of India’s ship repair ecosystem
The project, worth Rs 1,570 crore, will be developed jointly by the Deendayal Port Authority and Cochin Shipyard. Planned as a brownfield project, the Vadinar Ship Repair Facility will feature a 650 metres jetty, two large floating dry docks, workshops and associated marine infrastructure.
A brownfield for manufacturing sites is previously developed property, often a former factory or industrial plant, the reuse or redevelopment of which is complicated due to existing or potential environmental contamination.
What will make the Vadinar Ship Repair Facility an optimal location for repair operations, particularly for large commercial and foreign‑flagged vessels, is its natural deep draft, connectivity to major shipping routes, and proximity to key ports such as Mundra and Kandla.
Sharing an AI-generated informational video on social media, the Ministry of Information and Broadcasting said, “The Union Cabinet has approved the development of a state‑of‑the‑art Ship Repair Facility at Vadinar, Gujarat, marking a major expansion of the national ship repair ecosystem. The project will be jointly implemented by Deendayal Port Authority (DPA) and Cochin Shipyard Limited, with a combined investment of ₹1,570 crore. The initiative will contribute to regional economic growth and support India’s long‑term maritime objectives under Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.”
The Union Cabinet has approved the development of a state‑of‑the‑art Ship Repair Facility at Vadinar, Gujarat, marking a major expansion of the national ship repair ecosystem. The project will be jointly implemented by Deendayal Port Authority (DPA) and Cochin Shipyard Limited ,… pic.twitter.com/B0sPxtmUbe
— Ministry of Information and Broadcasting (@MIB_India) May 6, 2026
Presently, India sends a large share of ship repair work abroad. However, after the Vadinar Ship Repair Facility becomes operational, it will enable high-value repairs domestically and aid in retaining business within India, in addition to generating over 1300 jobs. The project will also spur growth in the maritime cluster of Gujarat and ancillary industries, thus giving a boost to the regional economy.
Regarding the impact this project will have, the Cabinet Committee on Economic Affairs (CCEA) said in a statement, “The Vadinar Ship Repair Facility will directly address a critical gap in India’s ship repair infrastructure, as the country currently lacks adequate domestic capacity to repair large vessels exceeding 230 m in length. By enabling repair of vessels up to 300 m, the facility will allow high‑value repairs of large vessels within India. This will significantly reduce dependence on foreign shipyards and curb foreign exchange outflow.”
“India aims to be a trusted global partner for ship manufacturing and repair.
₹1,570 crore facility with two 300m floating dry docks approved by cabinet for Vadinar, Gujarat.”
– Union Minister Ashwini Vaishnaw pic.twitter.com/vISvmaqipc
— News Arena India (@NewsArenaIndia) May 5, 2026
It further stated that enhanced turnaround times and strengthened repair capability on the western coast will improve the overall competitiveness of Indian ports.
The Vadinar Ship Repair Facility is expected to create sustainable employment, generating approximately 290 direct and around 1,100 indirect jobs across ship repair, logistics, and ancillary industries, while catalysing a broader maritime industrial ecosystem, the government said.
Modi government’s overhaul of India’s shipbuilding and repair sector
In recent years, the Modi government has taken several concrete policy decisions towards expanding India’s shipbuilding and repair ecosystem and curbing reliance on foreign facilities for routine and complex vessel work. OpIndia has reported earlier about the various initiatives launched by the Central government to revive and scale up India’s shipbuilding and repair industry.
India currently ranks 22nd in the global shipbuilding industry; however, it aims to enter the top 10 global rank by 2030 and become one of the top 5 countries by 2047. This ambition is a part of the Modi government’s broader visions, including the Maritime India Vision 2030 and Amrit Kaal Vision 2047, intended to capture a massive share of the global shipbuilding and ship repair markets.
In December 2025, the Ministry of Ports, Shipping & Waterways notified the operational guidelines for two major shipbuilding initiatives, the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS), with a budget of Rs 44,700 Crore.
The SBFAS has been allocated a budget of Rs 24,736 crore. Under this scheme, the Central government will offer fiscal assistance ranging from 15% to 25% per vessel, depending on the vessel category.
The Modi government also launched the Shipbuilding Development Scheme (SbDS) to strengthen long-term capacity and capability creation. The scheme worth Rs 19,989 crore will cover the development of greenfield shipbuilding clusters, expansion and modernisation of existing brownfield shipyards. In addition, the SbDS provides for the establishment of an India Ship Technology Centre under the Indian Maritime University to support research, design, innovation and skills development.
Moreover, greenfield shipbuilding clusters will be provided 100% capital support for common maritime and internal infrastructure through a 50:50 Centre–State special purpose vehicle. In addition, existing shipyards will be eligible for 25% capital assistance for brownfield expansion of critical infrastructure, including dry docks, ship-lifts, fabrication facilities and automation systems. The SbDS also provides for a Credit Risk Coverage Framework, providing government-backed insurance for pre-shipment, post-shipment and vendor-default risks to improve project bankability and financial resilience.
In February 2025, Finance Minister Nirmala Sitharaman announced in her speech for the budget 2025-26 that ships above a specified size would be included in the harmonised master list (HML) for infrastructure, making them eligible for financial incentives. This enabled an influx of private investment in the shipbuilding industry and enhanced fleet modernisation.
The Modi government also announced the allocation of a Maritime Development Fund (MDF) with a corpus of Rs 25,000 crore.
In September last year, it was reported that the Central government is considering investing ₹75,000 crore in the three new shipyards that are expected to be built along its east and west coasts.
In December 2025, the Ministry of Ports, Shipping and Waterways announced that it had approved a comprehensive package of Rs. 69,725 crores featuring a four-pillar approach to strengthen domestic capacity, maritime financing, shipyard development, skilling, and reforms. The government estimated that this move could stimulate the creation of more than 22 lakh direct and indirect jobs.
Clearly, the Modi government has its priorities set right in the face of the many industry challenges. The approval of the Vadinar Ship Repair Facility is the latest in a series of actions taken and showcases the Central government’s focus on supporting practical infrastructure projects alongside policy and financial backing.
