Gujarat’s Deendayal Port Charts Course For Shipbuilding Hub, Invites Bids To Allot Land For Mega Cluster

Hot on the heels of the Budget 2025 announcement aimed at propelling India’s shipbuilding industry, the Deendayal Port Authority (DPA) in Gujarat has launched a major initiative—floating a tender for the allocation of 2,000 acres of land to develop a cutting-edge shipbuilding cluster.

This ambitious project is set to become a hub for companies specializing in the design and construction of oceangoing vessels of 5,000 GT and above, reinforcing India's push for self-reliance in ship manufacturing.

Strategically located on the west coast in the Gulf of Kutch, Deendayal Port is one of India’s 12 major ports and a key player in the country’s maritime sector. As per the bid conditions, the land will be leased for 30 years to the eligible companies.

The move aligns with Finance Minister Nirmala Sitharaman’s Union Budget 2025 announcement on February 1, which introduced the second phase of the Shipbuilding Financial Assistance Policy (SBFAP). This policy aims to boost domestic shipbuilding by offering subsidies on the contracted price or fair value of vessels constructed in India over a 10-year timeframe from 2024 to 2034.

To further enhance shipbuilding capabilities, the government is actively exploring the creation of shipbuilding mega clusters, with Andhra Pradesh and Odisha emerging as potential locations.

Global shipping giant Mediterranean Shipping Company SA (MSC) has initiated preliminary talks to identify a suitable greenfield site for a new shipyard, reports the Businessline. Facing a global shortage of shipbuilding slots, MSC is looking to establish its own facility for in-house ship construction and repair.