Mumbai Port, Maharashtra to Develop Greenfield Shipbuilding Hub

• Maharashtra will prepare TEFRs for three shipbuilding sites and a DPR for one cluster within six months
• The ₹19,989 crore Shipbuilding Development Scheme funds 3-4 greenfield clusters, covering land, infrastructure, and ancillary industries
• Each cluster will have 2 km waterfront, 2,000 acres, anchor shipyards, and complete shipbuilding support facilities

The Maharashtra government has appointed a consultant to prepare a Techno-Economic Feasibility Report (TEFR) for three potential shipbuilding cluster sites, Nandgaon, Dighi, and Vijaydurg, and to develop a Detailed Project Report (DPR) for one selected cluster within six months.

M Angamuthu, Chairman, Mumbai Port Authority stated, “The project is proposed to be developed under a landlord model, following which further action relating to funding, infrastructure development and investment facilitation would be initiated”.

The Special Purpose Vehicle (SPV) will be responsible for developing common land and seaside infrastructure at the chosen national mega shipbuilding cluster in Maharashtra.

Angamuthu added, “Mumbai Port Authority is working jointly with the state government and its designated agencies to evolve a suitable institutional framework, implementation model, and investment structure, including participation of private sector stakeholders, wherever feasible. As a first step towards this, Mumbai Port Authority has agreed to share half of the cost of preparing the TEFR”.

India plans to expand its shipbuilding capacity 40 times until it reaches 4.5 million GT by the year 2037. To support this goal, the Union Cabinet has approved the Shipbuilding Development Scheme with a budget of ₹19,989 crore which will establish three to four new shipbuilding clusters that each state can only develop one cluster.

The scheme provides 100% capital assistance as grants for components such as breakwaters, tide-independent basins, channel and basin development, land reclamation, regional shipbuilding capability centres, common maritime assets, internal infrastructure, utilities, and land development.

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“India has to build shipyards first that can take orders for constructing commercial ships. Government support and quick statutory approval processes are critical for setting up shipyards”, said Ranjan Varghese, CEO, Steel Ships.

The evaluation of state proposals for greenfield clusters will use multiple criteria which include SPV incorporation documents and TEFR and details about land availability through parcel-wise information and enabling policies and investment commitments from anchor shipyards and action plans with their timelines and statutory clearances which include environmental approvals and CRZ approvals.

Proposals which show greater preparation will receive higher priority during evaluation. The SPV will acquire cluster land through a transfer process which charges only ₹1 or the state government will acquire the land when needed.

The greenfield shipbuilding cluster provides its entire 2,000-acre area plus 2 kilometers of waterfront as plug-and-play infrastructure which includes separate areas for shipyards and ancillary industries and their internal and social infrastructure and shared facilities.

Engine manufacturing and steel and component fabrication and shipboard machinery suppliers and other allied units make up the ancillary industries sector. One or more large shipyards will operate in each cluster which together will maintain a total capacity of 1.2 million GT per year.

The anchor shipyards need to establish a minimum design capacity of 0.5 million GT per year while they maintain their facility as a shipbuilding operation for a decade.