New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved a Rs 1,570 crore proposal on Tuesday for the development of a state‑of‑the‑art Ship Repair Facility at Vadinar in Gujarat, marking a major expansion of the national ship repair ecosystem.  

The project will be jointly implemented by the Deendayal Port Authority (DPA), which is the administrative authority that runs the Kandla port, and the Cochin Shipyard Limited (CSL).

The project is planned as a brownfield facility with a 650 metres jetty, two large floating dry docks, workshops and associated marine infrastructure. Vadinar’s natural deep draft, connectivity to major shipping routes, and proximity to key ports such as Mundra and Kandla make it an optimal location for repair operations, particularly for large commercial and foreign‑flagged vessels, according to an official statement issued after the CCEA meeting.

The project will also create opportunities for skill development and generate direct and indirect employment, while enabling the growth of maritime ancillary services and MSMEs in the surrounding region.

The Vadinar Ship Repair Facility will directly address a critical gap in India’s ship repair infrastructure, as the country currently lacks adequate domestic capacity to repair large vessels exceeding 230 m in length. By enabling repair of vessels up to 300 m, the facility will allow high‑value repairs of large vessels within India. This will significantly reduce dependence on foreign shipyards and curb foreign exchange outflow, the statement said.

Enhanced turnaround times and strengthened repair capability on the western coast will improve the overall competitiveness of Indian ports. The project is expected to create sustainable employment, generating approximately 290 direct and around 1,100 indirect jobs across ship repair, logistics, and ancillary industries, while catalysing a broader maritime industrial ecosystem, the statement said.

The initiative will contribute to regional economic growth and support India’s long‑term maritime objectives under Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, the statement added.