Gujarat’s Shipbuilding Ambitions Get A Policy Boost

To stay globally competitive and complement the Centre’s financial support, the state’s new policy includes several incentives—ranging from interest subsidies to tax exemptions. The Gujarat Maritime Board (GMB) has already cleared the policy, which is now awaiting government approval. A study was conducted on Andhra Pradesh’s December 2024 policy before shaping this one.

According to senior Ports Department officials, Gujarat’s earlier shipbuilding policy—based on a 2010 framework—had provisions for land allocation, financial assistance, and incentives for establishing shipyards in the state. The updated version builds on this foundation, increasing the state’s share in the Centre's Shipbuilding Financial Assistance Policy (SBFAP) by 10%. This national scheme will remain in effect until 2026.

Additionally, the policy aims to promote internal design and R&D capabilities within shipyards and encourages technical collaborations through joint ventures. In a move to reduce operational costs, the GMB will waive land lease rents on land provided to shipyards. A special fund will also be set up to offer liquidity support to shipbuilding projects. GMB Vice Chairman and CEO Rajkumar Beniwal shared that “any policy of the Ports Department that has expired or can be improved is currently being worked on. This Shipbuilding Policy is also a part of that, and it has been prepared and presented to the government.”

Another senior GMB official pointed out that with the central government already running its own Shipbuilding Policy and Financial Assistance Scheme, Gujarat has been careful not to create overlaps or contradictions. The goal is to build state-of-the-art infrastructure for building large ships and deep-draft vessels. A study was conducted with the Andhra Pradesh Maritime Board and Industrial Infrastructure Corporation before finalising the draft.

Notable Shipbuilding Yards:

• ABG Shipyard (closed) – Magdalla, Surat
• L&T – Hazira
• Soft Shipyard – Kaladara Village
• Wadia Boat Builders – Bilimora
• Alcock Ashdown, Gujarat (closed) – Bhavnagar
• Modest Infrastructure Limited - Bhavnagar
• Alang Marine – Ghogha
• Pipavav Shipyard Limited – Pipavav
• Development of a Shipbuilding Cluster in Kandla, Kutch