Kandla Sets Ambitious Target to Build 50 Ships Annually.

Deendayal Port Authority (DPA) is set to develop a massive shipbuilding cluster in Gujarat’s Kutch district, leasing 2,000 acres in Veera village near Tuna Tekra. The ₹27,000-crore greenfield project aims to construct 50 very large crude carriers (VLCCs) or similar vessels annually, each with a capacity of 3.2 lakh dead weight tonnage (DWT).

DPA, which operates India’s oldest major port at Kandla, has floated an expression of interest (EoI) to auction the land to a global industry partner capable of designing and constructing shipyards. "We are offering a strategic land parcel with a 1.2-km waterfront on a 30-year lease and are open to joint ventures or equity partnerships with private players,” said SK Singh, Chairman of DPA.

Once completed, this shipyard will be Gujarat’s 11th, adding to the state’s existing 5.4 lakh DWT shipbuilding capacity. However, many of Gujarat’s major shipyards—including those of ABG Shipyard, Pipavav Shipyard, and state-owned Alcock Ashdown—have shut down in the past decade due to financial and operational challenges.

Despite the closures, DPA remains optimistic about India’s shipbuilding potential, citing interest from global players looking for alternatives to Japan and South Korea. India currently holds just 0.05% of the $146-billion global commercial shipbuilding market, dominated by China, South Korea, and Japan.

The project is part of broader efforts to boost shipbuilding in Gujarat. DPA is also working with Cochin Shipyard to establish a ₹1,700-crore ship-repair hub at Vadinar. At the 2024 Vibrant Gujarat Summit, companies like ArcelorMittal Nippon Steel and Mandovi Drydocks proposed new shipyards in locations such as Hazira, Kutch, Bhavnagar, and Amreli.

HBL