Union Cabinet Approves Rs 1,570 Crore Ship Repair Facility at Vadinar in Gujarat
May 05, 2026
New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved the development of a ship repair facility at Vadinar, marking a major expansion of the country’s ship repair ecosystem, an official statement said.
The project will be jointly implemented by Deendayal Port Authority (DPA) and Cochin Shipyard Limited (CSL), with a combined investment of Rs 1,570 crore.
The facility is planned as a brownfield project featuring a 650-metre jetty, two large floating dry docks, workshops, and associated marine infrastructure. Vadinar’s natural deep draft, connectivity to major shipping routes, and proximity to key ports such as Mundra Port and Kandla Port make it an optimal location for repair operations, particularly for large commercial and foreign-flagged vessels.
The project is also expected to create opportunities for skill development and generate both direct and indirect employment, while supporting the growth of maritime ancillary services and MSMEs in the surrounding region.
Impact
According to the Union government, the facility will address a critical gap in India’s ship repair infrastructure, as the country currently lacks sufficient domestic capacity to service large vessels exceeding 230 metres in length. By enabling repairs of vessels up to 300 metres, the project will facilitate high-value maintenance within India, reducing dependence on foreign shipyards and curbing foreign exchange outflow.
Improved turnaround times and enhanced repair capabilities along the western coast are expected to boost the competitiveness of Indian ports. The project is estimated to generate around 290 direct and 1,100 indirect jobs across ship repair, logistics, and ancillary industries, while catalysing a broader maritime industrial ecosystem. DeshGujarat
