The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday, 5 May 2025, approved a ₹1,570 crore proposal for the development of a state-of-the-art Ship Repair Facility at Vadinar in Gujarat, marking a significant expansion of India's national ship repair ecosystem. The facility, to be jointly developed by the Deendayal Port Authority (DPA) and Cochin Shipyard Limited (CSL), is designed to address a long-standing gap in the country's maritime infrastructure.

What the Project Entails

The Vadinar Ship Repair Facility is planned as a brownfield development, comprising a 650-metre jetty, two large floating dry docks, dedicated workshops, and associated marine infrastructure. The facility's design will enable the repair of vessels up to 300 metres in length — a capability India currently lacks, as the country has no adequate domestic capacity to service large vessels exceeding 230 metres.

Vadinar's natural deep-draft conditions, strong connectivity to major international shipping routes, and proximity to key ports including Mundra and Kandla make it a strategically optimal location, particularly for large commercial and foreign-flagged vessels, according to an official statement issued after the CCEA meeting.

Addressing a Critical Infrastructure Gap

India has historically been unable to service its largest inbound vessels domestically, forcing high-value repair work to be routed to foreign shipyards — resulting in significant foreign exchange outflow. The new facility is expected to substantially reduce this dependence by bringing large-vessel repair capacity onshore for the first time at scale.

Notably, enhanced turnaround times and a strengthened repair capability on the western coast are projected to improve the overall competitiveness of Indian ports. This comes amid India's broader push to position itself as a global maritime hub under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 frameworks.

Employment and Economic Impact

The project is expected to generate approximately 290 direct jobs and around 1,100 indirect jobs across ship repair, logistics, and ancillary industries, according to the official statement. Beyond direct employment, the facility is intended to catalyse growth in maritime ancillary services and MSMEs in the surrounding region, contributing to broader regional economic development.

Skill development opportunities are also a stated priority, with the project designed to build a trained workforce capable of sustaining high-value maritime repair operations over the long term.

Institutional Roles and Strategic Alignment

The Deendayal Port Authority, the administrative body overseeing Kandla Port, will co-implement the facility alongside Cochin Shipyard Limited, one of India's largest public-sector shipbuilders. The partnership brings together port infrastructure expertise and shipbuilding technical capability under a single project framework.

The initiative is aligned with India's long-term maritime objectives and represents one of the more significant capital commitments to western-coast port infrastructure in recent years. Detailed implementation timelines have not yet been disclosed; further operational details are expected as the project moves into its execution phase.