SDHI, Gujarat Maritime Board Ink Rs 4,250 Cr MoU

• SDHI will invest ₹4,250 crore at its Pipavav Port shipyard
• A ₹200 crore Centre of Excellence will train over 1,000 youth annually
• SDHI signed MoUs with Gujarat Maritime Board and Sagarmala Finance Corporation

Swan Defence and Heavy Industries Limited (SDHI) and the Gujarat Maritime Board (GMB) have entered into a Memorandum of Understanding (MoU) aimed at developing the shipbuilding industry in India.

As part of the MoU, SDHI will invest ₹4,250 crore in three projects at its Pipavav Port shipyard, which houses India’s largest dry dock and can construct vessels with a deadweight tonnage of 400,000 DWT.

SDHI MoU Gujarat with the Gujarat Maritime Board marks a significant step in SDHI shipbuilding investment, with a ₹4,250 crore MoU shipbuilding agreement to strengthen India maritime growth and the Gujarat shipbuilding sector.

Of the total investment amount, ₹3,500 crore will go toward high-capacity shipyard upgrades such as enhanced slipways, jetties, cranes, block fabrication, and dredging capabilities. SDHI will also set up a ₹200 crore Centre of Excellence (CoE) for Maritime that will provide training for over 1000 youth, every year. This will include infrastructure such as classrooms, specialized labs, simulators, and design (assisted) software systems to help with ship design, construction, and retrofits.

Additionally, SDHI will invest ₹550 crore to establish a 200-acre Maritime Cluster at the shipyard that is expected to host ancillary industries, suppliers, and support services. This partnership will enhance shipbuilding infrastructure in India, support Gujarat maritime development, and bolster the Indian shipbuilding industry through the SDHI Gujarat partnership.

Rear Admiral Vipin Kumar Saxena (retd.), the CEO of SDHI, stated that initiatives like this will help build India’s shipbuilding and maritime capability and have a skilled workforce. "This collaboration will support capacity expansion and skill development at the shipyard, contributing to the growth of the maritime sector and positioning India in global shipbuilding networks", he added.

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Separately, SDHI entered into yet another MoU, this one being with Sagarmala Finance Corporation Limited (SMFCL), to look into projects aimed at shipbuilding, ship repair, and additional maritime infrastructure. An agreement with SMFCL is anticipated to be completed on September 20 concerning investments under the proposed Maritime Development, which includes debt financing.

The partnership will explore studies related to the feasibility of projects, implementation of sustainable shipbuilding technologies, localisation of supply chain, and vendor development and will also explore options in a financing framework, i.e. equity, debt, and credit enhancements.

Proposed co-financiers may include governmental departments, multi-lateral funding institutions, and private investment capital. "The partnership is expected to strengthen supply chains, create jobs, and contribute to India’s position in the global shipbuilding market", Saxena noted.

These strategic initiatives will aim to develop India's maritime infrastructure, develop newer capabilities in the workforce, and help towards increased exports.

They fall in support of the government's Maritime Amrit Kaal Vision 2047, as well as implementation of the Maritime India Vision 2030, and PM Gati Shakti to compete globally with a shipbuilding industry.