In a significant stride towards enhancing its maritime infrastructure, India has announced the development of a state-of-the-art shipbuilding facility at Kandla’s Deendayal Port. Announced by Ports, Shipping and Waterways Minister Sarbananda Sonowal during his visit on Tuesday, the ambitious project aims to position India among the elite nations capable of constructing Very Large Crude Carriers (VLCCs).
Currently, only China and South Korea possess the expertise to build double-hulled vessels with capacities reaching up to 2 million barrels of crude. India’s new shipyard, however, is set to manufacture VLCCs and similar large-scale vessels with a Deadweight Tonnage (DWT) of up to 320,000 tonnes. The $3.4 billion facility, sprawling over 8,000 acres on the western seaboard, is projected to construct 32 ships annually while also offering repair services for up to 50 vessels each year.
The expansive project encompasses not just shipbuilding but also includes the development of a marina, fishing harbour, residential townships, and a marine industrial cluster. These additions are expected to create substantial employment opportunities and stimulate ancillary industries, fostering a robust economic ecosystem around the port.
“This Mega Shipbuilding Facility embodies Prime Minister Narendra Modi’s vision of ‘Make in India, Make for the World’, showcasing our commitment to becoming a global leader in shipbuilding,” Sonowal stated. The initiative is a cornerstone of a broader $6.6 billion port infrastructure expansion plan aimed at elevating India’s maritime trade capabilities.
The International Energy Agency (IEA) has highlighted India’s burgeoning oil demand, forecasting a rise to 1.2 million barrels per day by 2030. Presently, India relies on imports to meet approximately 85% of its crude needs, with Russia being the largest supplier since 2023. The new shipbuilding capacity is poised to support this growing demand by enabling the construction of larger, more efficient tankers domestically.
In addition to the shipyard, Sonowal unveiled plans for a new cargo terminal outside Kandla Creek, estimated at $3 billion. This terminal will increase the port’s capacity by 135 metric tonnes per annum (MTPA) and modernize existing cargo jetties with advanced handling equipment and improved evacuation systems. These enhancements will facilitate the conversion of Kandla into a liquid cargo hub, significantly reducing waiting and turnaround times for tanker vessels.
“The strategic location of Kandla Port, close to major navigation channels, will allow larger vessels to dock, further boosting our maritime trade efficiency,” the ministry elaborated. Sonowal emphasized the critical role of ports in driving economic growth and underscored their importance in achieving the ‘Atmanirbhar Bharat’ vision by 2047.
The Kandla Shipbuilding Project not only marks a milestone in India’s maritime infrastructure but also reinforces the nation’s commitment to self-reliance and global competitiveness in the shipbuilding sector. As the project progresses, it is expected to unlock immense value for trade, create thousands of jobs, and position India as a pivotal player in the global shipping industry.
