GoG approves Shipbuilding and Repair Policy

Kapil.Dave

Gandhinagar: The long-awaited Shipbuilding and Repair Policy, 2026, has been approved by the state govy and is expected to be announced soon. The policy aims to set up new shipbuilding clusters, provide a slew of incentives to industries and envisages a shipbuilding capacity of 50 lakh DWT (deadweight tonnage) by 2047. The last shipbuilding policy for Gujarat was announced in 2010.

Officials said Gujarat has identified two locations for the development of shipbuilding clusters, one in Chhachhi, Kutch, and the other in Kuchhadi, Porbandar, and is in the process of identifying three new locations to develop greenfield shipyards.

The Chhachhi shipbuilding cluster is proposed over 990 hectares, with a 6.75-km waterfront. The Kuchhadi cluster proposed along the Porbandar district coastline will cover 870 hectares with a waterfront extending over 7km, official sources said. The policy, officials said, will offer a slew of incentives to industries, including interest subvention for reducing interest rates on financing, electricity and water subsidy, and dredging support for the shipbuilding ecosystem.

Beyond fiscal support, the proposed policy will ensure long-term waterfront access, single-window clearances, and the development of common infrastructure to reduce overall costs through the establishment of integrated mega shipbuilding parks (IMSPs), along with investments in R&D centres and skill hubs to develop skilled and technical manpower.

The policy draft states that a capital assistance of Rs 100 crore or 10% of the eFCI (eligible fixed capital incentive), whichever is lower, will be provided for individual shipyards. Similarly, for development of IMSPs, a capital assistance of Rs 150 crore or 20% of the eFCI, whichever is lower, will be provided.

For setting up marine equipment clusters in proximity of IMSPs, capital assistance of Rs 25 crore or 20% of the eFCI will be provided, whichever is lower. Special capital incentives for early birds have also been introduced in the form of additional 5% benefits of the eFCI.

The draft also states that special incentives in the form of stamp duty exemption and interest subvention of maximum of 7% have been proposed to effectively lower the interest rate to 5%.

The govt has also proposed additional incentives in the form of dredging because of higher capital outlay for such activities. In addition, financial assistance has been proposed for setting up of skill development centres and institutions for research work in shipbuilding and repair-related activities.