The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Shri Narendra Modi, approved the establishment of a state-of-the-art Ship Repair Facility at Vadinar, Gujarat. The project will be jointly developed by the Deendayal Port Authority (DPA) and Cochin Shipyard Limited (CSL) at a combined investment of INR 1,570-crore.

The project is planned as an upgrade facility, which includes a 650-meter jetty, two mega floating aquifer dock facilities (dry box) workshops, and associated marine infrastructure. Vadinar's natural high sea, connectivity to major sea routes, and proximity to major ports like Mundra and Kandla make it an ideal location for repair work, especially for large commercial and foreign target vessels.

The project is expected to generate skill development opportunities, direct and indirect employment, boost the growth of maritime allied services and Micro, Small and Medium Enterprises (MSMEs) in the surrounding region.

The Vadinar ship repair facility will address one of the critical gaps in India's ship repair infrastructure as the existing capacity for major ships above 230 metres is not sufficient domestically. Further, as ship repairs up to 300 metres can be repaired, it will help reduce cost of repair of large ships within India. This will significantly reduce dependence on foreign shipyards and save foreign exchange.

The project is expected to generate sustainable employment by generating about 290 direct and about 1,100 indirect jobs in ship repair, logistics, and ancillary industries, while also giving a fillip to a wider maritime industrial ecosystem.