Cochin Shipyard and SDHI Receive Nod for Shipyard Expansion Plans.

Mumbai-listed shipbuilders Cochin Shipyard Ltd and Swan Defence and Heavy Industries Ltd have received in-principle approval from the National Shipbuilding Mission for brownfield expansion of their facilities in Kochi and Pipavav, respectively, as India pushes to strengthen domestic shipbuilding capacity.

Cochin Shipyard, the state-run shipbuilder, plans to set up a ₹4,000-crore block fabrication facility through a joint venture with South Korea’s HD Hyundai Heavy Industries Co Ltd. The facility will come up on land leased from the Cochin Port Authority, adjacent to the company’s flagship shipyard in Kochi.

Swan Defence and Heavy Industries will use 75 acres of land adjacent to its offshore fabrication yard at Pipavav in Gujarat for its expansion plans.

“We have plans for Phase 2 going forward. Environmental studies are already on and once that gets over, we are going to appoint a consultant to do a complete study for expansion,” Swan Defence and Heavy Industries Chief Executive Officer Rear Admiral (IN Retd) VK Saxena told ET Infra during a visit to the yard.

The approvals come under the government’s Shipbuilding Development Scheme (SbDS), which aims to support capacity expansion of operational shipyards through financial assistance. The Union Cabinet had approved a ₹19,989-crore scheme, including ₹8,261 crore earmarked for brownfield shipyard expansion.

Under the scheme guidelines issued by the Ministry of Ports, Shipping and Waterways, eligible shipyards can receive capital assistance as a grant, capped at ₹1,500 crore per shipyard. The assistance will cover 25 per cent of the approved project cost and will be released in four tranches linked to project milestones.

The National Shipbuilding Mission, the nodal agency for the sector under the Shipbuilding Financial Assistance Scheme, is responsible for policy coordination, project monitoring and sanctioning of capital support for brownfield capacity expansion projects.

The in-principle approval enables eligible shipyards to undertake preparatory activities before seeking final approval for financial assistance. Only works initiated after receiving the approval will qualify under the scheme.

The scheme supports expansion projects involving infrastructure such as dry docks, slipways, ship lifts, floating docks, piers, cranes, modular fabrication facilities, automation and digitalisation systems.

Projects undertaken through subsidiaries and joint ventures are also eligible, subject to equity ownership conditions. Shipyards applying under a joint venture arrangement must maintain a minimum equity stake, with certain relaxations available for multi-partner ventures.

To qualify for assistance, shipyards must meet eligibility criteria, including being incorporated and operational for at least three years before September 24, 2025. In cases where expansion takes place on leased land, the lease agreement must have a minimum tenure of 15 years from the date of application.

The government’s shipbuilding push is aimed at positioning India among the world’s leading shipbuilding nations. India has set a target of entering the top 10 in ship ownership and shipbuilding by 2030 and the top five by 2047, with plans to substantially increase ship ownership capacity and shipbuilding output over the coming decades.