The Gujarat government has approved the long-awaited Shipbuilding and Repair Policy, 2026, which is expected to be announced soon. This policy aims to establish new shipbuilding clusters, provide a range of incentives to industries, and envisions a shipbuilding capacity of 50 lakh deadweight tonnage (DWT) by 2047. The last shipbuilding policy for Gujarat was announced in 2010.
Identified Locations for Shipbuilding Clusters
Officials have identified two locations for the development of shipbuilding clusters: one in Chhachhi, Kutch, and the other in Kuchhadi, Porbandar. Additionally, three new locations are being identified to develop greenfield shipyards. The Chhachhi cluster is proposed over 990 hectares with a 6.75-km waterfront, while the Kuchhadi cluster will cover 870 hectares with a waterfront extending over 7 km.
Incentives for Industries
The policy offers a slew of incentives, including interest subvention to reduce financing rates, electricity and water subsidies, and dredging support for the shipbuilding ecosystem. Beyond fiscal support, the policy ensures long-term waterfront access, single-window clearances, and development of common infrastructure through integrated mega shipbuilding parks (IMSPs). Investments in R&D centres and skill hubs are also planned to develop skilled manpower.
Capital Assistance Details
- Individual shipyards: Capital assistance of Rs 100 crore or 10% of eligible fixed capital incentive (eFCI), whichever is lower.
- IMSPs: Capital assistance of Rs 150 crore or 20% of eFCI, whichever is lower.
- Marine equipment clusters near IMSPs: Capital assistance of Rs 25 crore or 20% of eFCI, whichever is lower.
Special capital incentives for early birds include an additional 5% benefit of eFCI. Stamp duty exemption and interest subvention of up to 7% have been proposed to effectively lower the interest rate to 5%. Additional incentives include dredging support due to higher capital outlay. Financial assistance is also proposed for setting up skill development centres and research institutions in shipbuilding and repair-related activities.
