Gujarat unveils shipbuilding policy; offers 50-year concessions, targets ₹27,000-crore investments

Gujarat government on Monday unveiled its shipbuilding and repair policy 2026, setting an ambitious target of attracting ₹27,000 crore of investment through a mega greenfield shipbuilding cluster at Kuchhadi in Porbandar, while offering waterfront concession and lease periods of up to 50 years for large shipyards as part of its plan to emerge as India’s leading shipbuilding and ship repair hub.

Launching the policy in Gandhinagar, Chief Minister Bhupendra Patel said the Centre has approved the establishment of the mega greenfield shipbuilding cluster at Kuchhadi. The project is expected to attract about ₹23,700 crore in private investment for shipyards and ancillary industries, while ₹3,300 crore will be invested in common marine and land infrastructure with support from the Centre and the Gujarat government.

The policy on the back of the businessline’s report on June 24 about the Gujarat Maritime Board (GMB) inviting expressions of interest (EoIs) for developing three greenfield shipyards at Mithapur (Devbhumi Dwarka), Ghogha (Bhavnagar) and Vadhera (Amreli), an Integrated mega shipbuilding cluster at Kuchhadi in Porbandar district.

To provide long-term certainty to investors, the policy provides waterfront concession and lease periods of up to 50 years for large shipyards capable of building vessels above 30,000 DWT (Deadweight Tonnage). Smaller shipyards with capacity below 30,000 DWT will get an initial concession period of 15 years, extendable up to 30 years based on performance.

The policy allows development of commercially viable shipbuilding and repair yards through multiple models, including sites identified by the Gujarat Maritime Board, shipyards within private ports, shipyards within Integrated Mega Shipbuilding Parks (IMSPs), standalone proposals submitted by PPP players and standalone proposals by public sector undertakings (PSUs).

Private port developers will be permitted to establish shipyards within their authorised waterfront areas. Shipbuilding and repair yards developed within private port limits will be considered part of the concession agreement or sub-concession agreements with port operators, with the licence period of such shipyards running concurrently with the BOOT period of the port.

For IMSPs, the Gujarat Maritime Board will ensure that no single developer is allotted more than 50 per cent of the total land area, enabling participation of multiple developers and creating a diversified industrial ecosystem.

The government on Mondy said Detailed project reports (DPRs) are being prepared by the Gujarat Maritime Board for the establishment of the Mega Greenfield Shipbuilding Cluster at the location. The cluster will house two to three world-class shipyards along with a network of ancillary industries.

The common infrastructure planned for the cluster includes breakwaters, floating cranes, heavy-lift ships, dredging facilities, harbour basin development, navigation channels, roads, electricity supply, water supply and other shared utilities. The integrated approach is expected to reduce infrastructure costs for investors, speed up project execution and improve Gujarat’s competitiveness as a maritime manufacturing hub.

To promote investments, the policy offers a range of fiscal and non-fiscal incentives, including capital assistance, stamp duty reimbursement, interest subvention, dredging assistance, subsidies to encourage procurement from MSMEs, support for electricity tariffs, subsidies on water charges, incentives for marine equipment manufacturing clusters and additional benefits for early-bird investors who commence development activities within the prescribed timelines.

Under the policy, new shipyards will receive capital assistance of 10 per cent of eligible fixed capital investment (eFCI), subject to a maximum assistance of ₹100 crore during the policy implementation period.

For shipyards developed within IMSPs, the assistance will be 20 per cent of eFCI or a maximum of ₹150 crore, whichever is lower.