India charts ambitious course with ₹1.5 Lakh crore coastal shipbuilding investment

By Admin

28 Jul, 2025

India is setting sail on a transformative journey to become a global hub for shipbuilding. Backed by a massive ₹1.5 lakh crore investment plan, the Ministry of Ports, Shipping and Waterways (MoPSW) is charting an ambitious course to establish coastal shipbuilding clusters across the nation. This strategic push aligns with India's broader maritime goals, including strengthening the blue economy and reducing dependence on foreign-built vessels.

Identifying Land for a Maritime Revolution

In a concerted effort with state governments, the Ministry has identified nearly 15,000 acres of land across five coastal states   Odisha, Andhra Pradesh, Tamil Nadu, Gujarat, and Maharashtra   for shipbuilding clusters. A senior MoPSW official confirmed that land parcels are being finalized through active collaboration with the respective state governments.

Maharashtra leads the pack, with approximately 5,800 acres, accounting for nearly 40% of all land identified or under consideration. Four key locations in Maharashtra   Dighi (2,550 acres), Jaigad (1,337 acres), Vijaydurg (1,000 acres), and Bankot (856 acres)   have been marked as prime spots for the development of marine shipyard clusters (MSCs), port-based shipyards, and standalone yards.

Projected Demand and Green Initiatives

According to the Ministry’s internal projections, India would need at least 207 vessels, totaling 8.6 million gross tonnage, to support the operational requirements of key departments, including Petroleum, Steel, Fertilisers, and the Shipping Corporation of India. This translates into a massive capital investment, triggering economic activity and job creation across the coastal belt.

India is also integrating sustainability into its shipbuilding vision. In Tamil Nadu, the shipbuilding cluster near Tuticorin (Thoothukudi) spans 1,800 acres with a 6.7 km sea front, and an additional 1,200 acres are planned, making it a 3,000-acre hub. The state is also emerging as a green hydrogen leader, with five approved projects totaling 4 million tonnes per annum and investments worth ₹2 lakh crore, making the region a prospective green vessel manufacturing and hydrogen export hub.

Incentives Galore: Boosting Investor Confidence

To attract global players, Tamil Nadu is offering three attractive incentives:

1. Capital investment reimbursement over 10 years.
   
   

2. Payroll-based subsidies over a decade.
   
   

3. Per vessel incentive for the first few ships built at the facility.
   
   

Maharashtra is proposing a 15% fiscal stimulus on project costs as a capital subsidy. When combined with Central government benefits (14–30%), the total incentive package rivals those in shipbuilding giants like South Korea. The state is also offering financial assistance up to ₹1 crore for skill development and ₹5 crore for R&D projects.

State-Wise Breakdown of Initiatives

• Odisha: 2,000 acres identified near Paradip Port in Kendrapara; pre-feasibility studies are ongoing.
  
  

• Andhra Pradesh: 3,000 acres identified, with 2,500 acres in Durgarajapatnam under techno-economic feasibility assessment for Phase 1. Additional land in Machillipatnam (500 acres) and Mulapeta (1,000 acres) has also been earmarked for scalable shipbuilding clusters.
  
  

• Gujarat: 2,000 acres in Kandla have been identified. The state is refining its shipbuilding policy. Key districts include Porbandar and Kutch, with shipyards proposed in Bhavnagar, Amreli, and Valsad.
  
  

• Maharashtra: Besides the major locations, 11 more sites are under review across Palghar, Raigad, Ratnagiri, and Sindhudurg, with rivers like Vaitarna, Amba, Kundalika, Rajpuri Creek, Saitri, and Waghotan being explored for standalone shipyards.
  
  

A Strategic Blueprint for the Future

India’s ₹1.5 lakh crore investment in coastal shipbuilding is more than a maritime development plan it is a bold blueprint to transform India into a global shipbuilding powerhouse. With expansive land acquisitions, state-level incentives, central fiscal support, and a focus on green and sustainable shipping, this initiative is poised to anchor India’s place in the future of global maritime trade.

As the shipbuilding clusters begin to take shape, India’s coastline will not only witness a surge in infrastructure but also see the rise of new economic zones, skilled jobs, and innovation hubs   all steering the country towards Atmanirbharta (self-reliance) on the high seas.