Ports Made Gujarat Rich, Shipbuilding Is Its Next Billion-Dollar Bet

Shipbuilding & Repair Policy 2026

The Shipbuilding & Repair Policy 2026 will remain in force for five years from the date of notification and may be extended for another five years if required. The policy replaces the Shipbuilding Policy 2010.

The State government says the policy is aligned with the Central government's Vision 2047 and the Shipbuilding Financial Assistance Scheme (SBFAS). Leveraging Gujarat's 2,340-km coastline, well-developed ports, and industrial infrastructure, the policy aims to establish the state as a global centre for shipbuilding and maritime manufacturing.

Shipbuilding Development Scheme 

Chief Minister Bhupendra Patel said that to strengthen the State's large industrial ecosystem, common marine and land-side infrastructure worth around ₹3,300 crore will be developed. Financial assistance for this will be provided through the Central government's Shipbuilding Development Scheme (SbDS) as well as support from the Gujarat government.

The infrastructure will include breakwaters, floating cranes, heavy-lift ships, dredging, harbour basin development, navigation channels, roads, power supply, water supply, and other common-use facilities.

Chief Secretary M.K. Das said that the policy provides for a Single Window Clearance System and a dedicated Grievance Redressal Mechanism to ensure a simple and time-bound approval process. This will enable industries to obtain the required clearances more efficiently and facilitate timely implementation of projects.

Hareet Shukla, Principal Secretary, Ports and Transport Department, said that the policy offers a range of financial and non-financial incentives to promote investment and industrial development. These include capital assistance, reimbursement of stamp duty, interest subvention, dredging assistance, subsidies to encourage procurement from Micro, Small, and Medium Enterprises (MSMEs), electricity tariff support, water charge subsidies, special incentives for Marine Equipment Manufacturing Clusters, and additional incentives for Early Bird investors who commence project development within the prescribed timeline.

S.S. Rathore, Chairman, Gujarat Maritime Board (GMB), said that the policy is expected to serve as a catalyst for increasing Gujarat's shipbuilding capacity to more than 50 lakh Deadweight Tonnage (DWT), establishing two Integrated Mega Shipbuilding Parks, and providing skill development and capacity-building training to more than 500,000 people.

The State government will also provide 100% reimbursement of Stamp Duty and Registration Fee, interest subsidy of up to 7%, incentives for procurement from MSMEs, electricity subsidy of ₹1 per unit for five years, 50% subsidy on water charges, assistance for dredging expenses, financial assistance for R&D and training, and a Single Window Clearance System.

The policy also encourages private investment through shipyards in private ports, the Public-Private Partnership (PPP) model, joint ventures, partnerships with global shipbuilders, and Public Sector Undertaking (PSU)-led projects.

The objective is to attract large-scale private investment through multiple development models.

To provide long-term certainty to investors, shipyards up to 30,000 DWT will receive a 15-year licence, extendable up to 30 years, while shipyards above 30,000 DWT will receive a 30-year licence, extendable up to 50 years based on performance.

The key highlight of the newly released policy is that the guidelines are applicable to greenfield shipyards, repair yards, shipbuilding clusters, ancillary units, and brownfield expansion projects. GMB will serve as the nodal agency for policy implementation. Further, even after receiving State approval, applicants must independently comply with all eligibility criteria and procedures under the SbDS/Shipbuilding Financial Assistance Scheme (SBFAS) of the Central government.

There are five development models for greenfield shipyards: GMB-identified sites, private ports, integrated mega shipbuilding park (IMSP), private proposals (Swiss Challenge), and the PSU model. 

Bidding Process

For competitive bidding, applicants must have the required technical experience and an average net worth of at least 25% of the estimated project cost over the last three financial years. The Minimum Guaranteed Gross Registered Tonnage Per Annum (MGGRTPA) will be the key bidding parameter. Projects must obtain In-Principle Approval, followed by DPR approval, and then permission to commence construction. 

Capital assistance will be disbursed in four instalments (25%, 50%, 75%, and 100%). Projects securing LOA/LOI within 12 months, DPR approval within 24 months, and completing construction within 36 months will be eligible for the Early Bird Incentive. A one-time reimbursement of stamp duty and registration fees paid for land purchase will be available, subject to policy conditions.

Moreover, shipyards operating within the IMSP will receive a 5% subsidy on goods and services procured from Gujarat-based MSMEs. Shipyards within the IMSP will be eligible for an electricity tariff subsidy of up to ₹1 per kWh for five years. Shipyards within the IMSP will receive a 50% water tariff subsidy for five years. State assistance for vessel construction will be released only after approval under the Central government's SBFAS. All applications, approvals, and incentive claims will be processed through the online GMB portal.