Goan shipyards face strong headwinds, expected to drop from first position

Panaji: Goa’s shipyards, which currently lead the country in annual deliveries of commercial vessels, face the risk of losing their edge. As other coastal states roll out aggressive shipbuilding policies and Goa struggles with limited land availability, the state could soon find itself adrift.

What Goan shipbuilding firms need are supportive policies, better infrastructure, and a tilt towards high-value vessels. “Today, 40% of all the commercial ships that are being built in India come from Goa,” Chowgule Group executive director Arjun Chowgule told TOI during an exclusive interaction. “But if you are asking me going forward whether Goa will maintain its position, my reading of the situation is, no. From a tonnage basis, Goa will come down in the next three to four years to probably the third or fourth position in terms of commercial deliveries of ships.”
Shipbuilding, he said, is a big opportunity for India but remains a capital-intensive sector. This is why the industry has long been asking for loans with longer repayment periods of up to 10–12 years.

Infrastructure constraints add to the challenge. “Most of the shipyards have reached their capacity and this is because of the height of the bridges. What all the shipyards need is a 75m-long common-use jetty beyond the bridges. The jetty should have a 50-tonne capacity crane with a 50m radius to install all the structures that cannot be fitted because of the bridge height. The govt is already working on this and we would like to see this as soon as possible. If this happens, then the shipyards will be encouraged to expand their capacity,” said Mandovi Drydocks CEO Atrey Sawant.

Most of Goa’s shipyards are located along the Mandovi and Zuari rivers, with many operating upriver, beyond the existing bridges. The height of these bridges, particularly the Borim bridge, restricts ship movement during high tide.
For Chowgule — the current CII Goa chairman — the way forward lies in strategy. “What Goa can and must do is shift focus to high-value shipbuilding. Shipyards don’t have to compete by building bigger ships. They can instead specialise in more complex, higher-value vessels. Many states are already pushing for shipbuilding clusters. Goa should position itself as one such cluster — an entire state serving as a hub for shipbuilding.”

While the Centre provides funding and incentives for large commercial vessels, industry voices stress the need for similar subsidies for shipyards that build smaller but sophisticated vessels. The Confederation of Indian Industry (CII) will be deliberating on these issues and the strategy for sustainable shipbuilding on Monday.
“Govt needs to encourage and inculcate a culture of boating and seafaring in the country and for this, marinas are a vital asset. Secondly, the GST on yachts is 40% and this automatically dissuades a customer. Taxation should be made more amicable for the industry,” said a young shipbuilder.