Gujarat’s Deendayal Port Authority Leases 2000-Acre Land for Major Shipbuilding Cluster in Kutch

To attract global shipbuilders, Deendayal Port Authority (DPA) in Gujarat plans to lease 2,000 acres in Kutch district to create a shipbuilding cluster. The goal is to construct 50 very large crude carriers (VLCC) annually, each with a capacity of 3.2 lakh dead weight tonnage (DWT). The Rs 27,000-crore greenfield project is set to be developed in Veera village near Tuna Tekra. DPA will provide the land with a waterfront of 1.2 km on a 30-year lease, along with necessary infrastructure and connectivity.

Gujarat already has existing shipbuilding capacity of over 5.4 lakh DWT, despite many shipyards being idle. In the past decade, major shipyards in the state, including two owned by ABG Shipyard and state-owned facilities like Alcock Ashdown and Chanch, have shut down. Pipavav Shipyard, formerly the country’s largest shipbuilder, was taken over by Swan Energy and resumed operations in December 2024. ABG Shipyard, the second largest private sector facility, remains non-functional.

Despite the dormant state of some shipyards, new projects are on the horizon. DPA is partnering with Cochin Shipyard to establish a ship-repair hub in Vadinar, Devbhumi Dwarka district, at a cost of Rs 1,700 crore. At the Vibrant Gujarat summit in January 2024, five proposals for new shipyards in Gujarat were received from various companies, signaling continued interest in the region for shipbuilding ventures. Plans for future shipbuilding yards in locations like Hazira, Kutch, Bhavnagar, and Amreli are in the works.

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