Mazagon Dock, Garden Reach, Cochin Shipyard in Focus as Govt Clears ₹44,700 Crore Scheme

The Indian government has announced 2 major shipbuilding schemes worth a combined ₹44,700 crore to strengthen domestic shipbuilding and improve global competitiveness. These include the Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme, notified by the Ministry of Ports, Shipping, and Waterways.

Together, these schemes aim to support large-scale shipbuilding, expand yard capacity, and reduce risks for shipbuilders over the long term. Both schemes will remain in force until FY36.

How the Schemes Work

Under the Shipbuilding Financial Assistance Scheme, the government will provide 15–25% financial support per ship, with a total outlay of ₹24,736 crore. This support is linked to project milestones and vessel categories, covering normal, large, and specialised ships. The scheme is expected to back shipbuilding projects worth nearly ₹96,000 crore.

The Shipbuilding Development Scheme, with a budget of ₹19,989 crore, focuses on capacity creation. It supports new greenfield shipbuilding clusters and the expansion and modernisation of existing shipyards.

Key Beneficiaries of the Policy Push

While the outlay is large, three defence shipbuilders are best placed to benefit due to their scale, execution ability, and strong order pipelines.

Mazagon Dock Shipbuilders: Defence Powerhouse

Mazagon Dock is India’s largest and oldest defence shipyard and a key partner of the Indian Navy. It builds complex warships and submarines and has steadily increased indigenous content in its vessels under the Make in India programme.

The company has built destroyers, stealth frigates, submarines, corvettes, and patrol vessels. As of September 2025, Mazagon’s order book stood at ₹27,415 crore, providing nearly 3 years of revenue visibility. Beyond this, it is bidding for defence projects worth over ₹3 lakh crore.

Mazagon is also expanding into commercial shipbuilding and overseas markets to reduce dependence on defence orders. It has taken up offshore platform projects and acquired a majority stake in Colombo Dockyard, marking its international expansion.

Garden Reach Shipbuilders: Balanced and Technology-Focused

Garden Reach Shipbuilders & Engineers (GRSE) is a versatile defence shipyard with capabilities across surface combatants and specialised vessels. Unlike peers, it has a diversified business model that includes shipbuilding, repair and refit, engineering products, and engine assembly.

As of September 2025, GRSE’s order book was ₹20,205 crore, offering more than four years of revenue visibility. It is executing major naval programs and has a growing export order book, mainly from Europe.

GRSE is also investing in advanced technologies such as autonomous vessels, electric ferries, and hydrogen-powered ships, while targeting high levels of indigenisation in future defence projects.

Cochin Shipyard: Repair Leader and Green Tech Player

Cochin Shipyard is a leading player in both shipbuilding and ship repair. It built India’s first indigenous aircraft carrier, INS Vikrant, and has strong capabilities across defence and commercial vessels.

Ship repair contributes a large share of its revenue, helping reduce earnings volatility. As of FY25, the company had an order backlog of ₹21,100 crore, offering 4–5 years of visibility. It is also pursuing a defence order pipeline of over ₹2.2 lakh crore.

Cochin Shipyard is a pioneer in green vessels, with a strong focus on hybrid-electric, zero-emission, and hydrogen-powered ships, especially for European clients.

Also Read: Wipro vs Infosys: Which IT Services Company Delivered Highest Earnings in Q2FY26?

Conclusion

India’s ₹44,700 crore shipbuilding push marks a long-term shift in policy, treating shipbuilding as a strategic industrial theme. With strong order books, proven execution, and advanced capabilities, Mazagon Dock, GRSE, and Cochin Shipyard are well-positioned to benefit most from this multi-year opportunity.

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