Cabinet Approves ₹1,570 Crore Vadinar Ship Repair Facility to Cut Foreign Dependence

This could position India as a regional hub for ship repair and maintenance services, capturing a larger share of the global maritime services market.

In a major step toward strengthening India's maritime infrastructure and reducing dependence on foreign shipyards, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved the development of a state-of-the-art Ship Repair Facility at Vadinar, Gujarat.

The project, to be jointly executed by the Deendayal Port Authority (DPA) and Cochin Shipyard Limited (CSL), will involve a total investment of ₹1,570 crore and is expected to significantly expand India's ship repair capabilities on the western coast.

Strategic Location with Global Connectivity

Planned as a brownfield development, the Vadinar facility will feature:

• A 650-metre jetty

• Two large floating dry docks

• Advanced workshops and marine infrastructure

Vadinar's natural deep draft, proximity to major ports like Mundra and Kandla, and location along key international shipping routes make it an ideal hub for servicing large commercial and foreign-flagged vessels.

Bridging a Critical Infrastructure Gap

India currently faces a significant shortfall in ship repair capacity, particularly for large vessels exceeding 230 metres in length. The new facility is designed to handle ships of up to 300 metres, enabling high-value repairs to be carried out domestically.

This capability is expected to:

• Reduce reliance on foreign shipyards

• Curtail foreign exchange outflows

• Enhance India's competitiveness in global maritime services

Boost to Maritime Economy and MSMEs

Beyond infrastructure development, the project is poised to act as a catalyst for the broader maritime ecosystem. It is expected to:

• Generate around 290 direct jobs

• Create approximately 1,100 indirect employment opportunities

• Promote growth of MSMEs and ancillary maritime services

The development is also likely to spur skill development in specialised areas such as ship repair, marine engineering, and logistics.

Faster Turnaround, Stronger Port Competitiveness

With improved repair capabilities on the western coast, Indian ports are expected to benefit from:

• Reduced turnaround times for vessels

• Increased attractiveness for international shipping lines

• Enhanced operational efficiency

This could position India as a regional hub for ship repair and maintenance services, capturing a larger share of the global maritime services market.

Aligned with Maritime India Vision 2030

The Vadinar Ship Repair Facility is aligned with the government's long-term maritime strategies, including:

• Maritime India Vision 2030

• Maritime Amrit Kaal Vision 2047

These initiatives aim to transform India into a leading maritime nation, with world-class infrastructure, strong domestic capabilities, and global competitiveness.

Driving Self-Reliance in Maritime Sector

The project reflects India's broader push for Aatmanirbharta (self-reliance) in critical sectors, extending beyond defence and manufacturing into maritime services.

By building domestic capacity for complex ship repairs, India is not only reducing external dependence but also creating a high-value industrial ecosystem that supports trade, logistics, and economic growth.

A Strategic Maritime Milestone

With global shipping volumes rising and supply chains becoming increasingly complex, the development of advanced ship repair infrastructure is critical. The Vadinar project marks a significant milestone in India's journey toward becoming a comprehensive maritime powerhouse.

As the facility takes shape, it is expected to deliver long-term economic benefits, strengthen India's strategic capabilities, and position the country as a preferred destination for maritime services in the region.