Investments worth over INR 66,000 crore planned for maritime sector, shipbuilding

Ahistoric chapter in India’s maritime journey was written in Bhavnagar earlier this month when a MoU Exchange Ceremony took place on the eve of the “Samudra Se Samriddhi – Transforming India’s Maritime Sector” event addressed by Prime Minister Mr Narendra Modi in which a number of projects pertaining to the maritime sector were launched. The MoUs were signed in the presence of Mr Sarbananda Sonowal - Union Minister of Ports, Shipping and Waterways, and others. As many as 27 Memorandum of Understanding (MoU) were exchanged between public and private sector stakeholders in the maritime sector, State Governments, and international partners. Together, these agreements carry an investment and development potential of over `66,000 crore and represent a significant collaborative commitment towards the growth of India’s maritime and shipbuilding sector.

The MoU ceremony showcased India’s integrated vision for maritime growth, covering new port infrastructure, shipping, shipbuilding clusters, global shipyard partnerships, financing mechanisms, innovative maritime investment, sustainable projects such as water metros and green tugs, as well as heritage-linked initiatives like the lighthouse museum. With their collective industrial, socio-economic, and strategic impact, these projects are set to re-position India as a leading global maritime and shipbuilding hub in the next decade, advancing the national resolve of an ‘Atmanirbhar Bharat’.

 

 

The most prominent of these agreements pertained to port development and capacity augmentation. A landmark MoU was signed between Paradip Port Authority, Visakhapatnam Port Authority, Sagarmala Finance Corporation Limited, and the Government of Odisha for the development of a new port at Bahuda, with a capacity of 150 million tonnes per annum proposed to be developed on more than 6,700 acres of coastal salt land that have been designated for maritime use, this project is expected to attract an investment of around `21,500 crore. It will act as an anchor for port-led industrialisation, logistics parks, and manufacturing clusters across Odisha and northern Andhra Pradesh. The Port is expected to provide direct and indirect employment opportunities to nearly 25,000 people while catalysing new waves of industrial and infrastructure development in eastern India.

SCI and oil PSUs in vessel owning JV

On the shipping front, a significant step towards India’s energy independence was unveiled through the MoU between the Shipping Corporation of India and the Oil PSUs—IOCL, BPCL, and HPCL—for the creation of a Vessel Owning Joint Venture Company. This is the first in a series of steps that will pool vessel demand from energy PSUs, thereby reducing reliance on foreign shipping fleets. It will also ensure long-term charter contracts for Indian-built ships, supported by SCI’s regulatory and operational expertise. The MoU aims to secure India’s vital crude oil and product transportation chains while scaling up demand for Indian shipbuilders in tandem with the Government’s Atmanirbhar Bharat programme.

Shipbuilding and clusters

Another category of MoUs at the ceremony pertained to shipbuilding and its allied clusters. In a move that could fundamentally alter the global perception of India’s shipbuilding capacity, the Ministry facilitated MoUs between major ports under MoPSW, GoI and the State Governments of Andhra Pradesh, Odisha, Gujarat, Maharashtra and Tamil Nadu for initiating the setting up of Shipbuilding clusters. These will be enabled through SPVs with joint investments from centre and states, supported by land transfer at nominal cost, tax incentives, and enabling policy measures. Each cluster will not only house state-of-the-art shipyards but also R&D centres, small industry linkages, ancillary units, specialised training facilities, and logistics corridors. The effort is targeted to position India amongst the world’s top five global shipbuilding nations by the 100th year of independence in 2047. Moreover, these clusters are designed as green innovation hubs, encouraging carbon-neutral shipbuilding and environmentally friendly marine engineering solutions.

The ceremony also witnessed many Indian industry collaborations with international players. A marquee MoU was signed between Cochin Shipyard Limited and HD Korea Shipbuilding & Offshore Engineering, signifying a long-term strategic partnership for building large commercial vessels in India. With CSL’s new 310-metre Dry Dock facility — inaugurated by the Prime Minister in January 2024 & now operational. The partnership will help India construct large carriers such as Suezmax oil tankers, container ships, and bulk carriers with a capacity of up to six ships annually. To feed this facility, CSL announced plans for an 80-acre Block Fabrication Facility (BFF) in Kochi, involving an investment of around `3,700 crore and a throughput potential of 1,20,000 metric tonnes of steel fabrication annually. The plant will create approximately 2,000 direct jobs and several times more indirect employment in allied industries, especially MSMEs and supply chains.

CSL also signed a MoU with SIPCOT and Guidance Tamil Nadu for the creation of a shipbuilding complex worth `15,000 crore in the state. The facility will have a unique capacity to manufacture one million GT of ships annually and will generate employment for around 8,000 people directly and over 40,000 indirectly. Mazagon Dock Shipbuilders Limited entered into a parallel MoU with Guidance Tamil Nadu to set up another large greenfield yard in Thoothukudi.

The Gujarat Maritime Board capitalised on Bhavnagar’s historic shipbuilding tradition by signing multiple agreements with private partners including Act Infra Ports, Modest Infrastructure, Chowgule and Company, and SWAN Defence. These MoUs, with a total investment exceeding `13,600 crore, outline mega facilities for comprehensive shipbuilding, ship repair, offshore infrastructure and recycling yards spread across the Gulf of Kutch, Nava Ratanpara, Pipavav and other sites. The integrated approach is expected to generate significant employment while embedding Gujarat firmly on the global maritime map, further transforming the state into one of India’s prime shipbuilding centres. To reinforce combined capacities further east, Garden Reach Shipbuilders & Engineers signed agreements with IPRCL, SCI, SMPK and Modest Shipyard for new ventures in greenfield facilities, tug development, and ship repair, particularly in Gujarat and West Bengal, highlighted a release.

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