NEW DELHI: In a major move to strengthen India’s domestic shipbuilding industry and meet rising demand, the government is set to launch the second phase of the Shipbuilding Financial Assistance Policy, with an outlay of over ₹20,000 crore. The plan also includes developing four new greenfield shipbuilding and repair hubs over the next six years, sources told TOI.
The proposed hubs will be located on 2,000–3,000-acre land parcels identified in:
- Kendrapara, Odisha (near Paradip Port)
- Dugarajapatnam, Andhra Pradesh
- Kandla, Gujarat
- Tuticorin, Tamil Nadu
This renewed push for shipbuilding comes as India anticipates the need for around 112 new vessels—including crude carriers, petroleum tankers, LPG and LNG carriers, bitumen and black oil vessels—over the next five years. The estimated cost of these vessels is ₹85,700 crore, while current domestic shipyards have the capacity to build only 28 of them.
“Given the demand, this is the ideal time to launch the initiative and expand capacity,” said a senior official. The Ministry of Petroleum and Natural Gas has also been directed to issue tenders for 10 medium-range tankers by the end of May.
For the Dugarajapatnam project, the Andhra Pradesh government has initiated talks with Imabari Shipbuilding Co.—Japan’s largest shipbuilder—as well as South Korea’s HD KSOE and Hanwha Ocean.
Currently, India has only eight large, seven medium, and 28 small shipyards. “There is immense potential to not only meet domestic needs but also emerge as a key global player in the shipbuilding sector in the coming years,” an official noted.
Additionally, the government is preparing a proposal to establish a ₹25,000 crore Maritime Development Fund, aimed at offering equity and debt-based financial support to the shipping sector. The proposal is expected to be placed before the Union Cabinet for approval soon.
