Cabinet Approves ₹1,570 Crore Ship Repair Facility in Gujarat

The Cabinet Committee on Economic Affairs has approved a ₹1,570 crore ship repair facility at Vadinar in Gujarat.  

The project will be developed jointly by Deendayal Port Authority and Cochin Shipyard Limited, according to an official government statement issued on Wednesday. 

The proposed facility will be developed on an existing site and will include a 650-metre jetty, 2 floating dry docks, workshops and related marine infrastructure. The government said the project is intended to increase ship repair capacity on the western coast. 

Limited Domestic Capacity 

India currently has limited infrastructure for repairing large vessels within the country. Government data showed that domestic facilities are inadequate for ships longer than 230 metres. 

The Vadinar facility is expected to handle vessels of up to 300 metres in length, including large cargo carriers and foreign-flagged ships. The government said this may reduce dependence on overseas shipyards for major repair work. 

Officials also stated that domestic repairs could help reduce foreign exchange outflows linked to ship servicing carried out abroad. 

Location and Connectivity 

Vadinar was selected due to its natural deep draft and access to major shipping routes. The site is located near ports such as Mundra and Kandla, which handle a significant share of cargo traffic on the western coast. 

According to the government, the location may support quicker turnaround for repair operations and improve access for vessels operating in the Arabian Sea region. 

The project is also expected to support marine engineering and logistics activity around nearby port zones. 

Employment Generation 

The government estimates that the facility could generate around 290 direct jobs and approximately 1,100 indirect employment opportunities. 

These are expected across ship repair operations, fabrication, transport, engineering support and related marine services. Officials said ancillary businesses and MSMEs linked to maritime activity may also benefit from the project. 

Read More: India Shows Steady Resilience to Global Shocks, According to Moody’s! 

Conclusion 

The approved project will add ship repair infrastructure in Gujarat and increase domestic capacity for handling larger commercial vessels. 

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