Shipyards

With the continuous penetration of economic globalization, Gujarat shipbuilding industry, whose share has kept rising in recent years, is becoming the significant shipbuilding centers of the world. The State is strongly emerging as a new shipbuilding destination in South Asia with many projects in pipeline.

Gujarat boasts a 60% share of the Indian shipbuilding order book. Presently, Gujarat has nine shipbuilding yards in operation, eight under execution and six under the process of approval and Gujarat Maritime Board (GMB) has envisaged for more notable shipbuilding projects.

At present there are '9' operational shipyards in Gujarat:

With Indian companies planning to drop anchors on Gujarat's shores, the State is likely to harbor huge investments in the development of shipyards. Among the players who have shown interest in developing shipyards in the state includes ABG Shipyard, AFCONS Infrastructure, Jindal Shipyard and Modest Shipyard Ltd., etc. Hence, GOG with its vision for economic development of the coastline has announced Shipbuilding Policy for Gujarat in 2010.

Shipbuilding Policy Objectives:

The business model employed by GMB to develop its shipyards is multiple approach:

Cluster Development Model of Shipbuilding / Marine Shipbuilding Park:

Gujarat Maritime Board has envisaged developing a cluster based shipyards or Marine Shipbuilding Park (MSP) within a stretch of 5 to 8 km along the waterfronts of Gujarat coasts. For the development of the cluster, GMB will assist the private developers for getting Clearances and other statutory approvals. The waterfront will be provided for development on a long-term basis. Government has also taken initiative to establish /upgrade training institutes to provide training for specific skill required for the Ship Building Industry. Two locations have been approved along the Gujarat Coast to develop as 'Marine Shipbuilding Park' viz. North bank of Narmada River in Dahej region and Old Bhavnagar port.

Key features of Marine Shipbuilding Parks:

• GMB will allot plots in the Marine Shipbuilding Parks (MSP) with license to utilize waterfront and land.
• GMB as a Nodal Agency, will develop Marine Shipbuilding Park (MSP)s will carry out development activities with GIDC or other agencies.
• Area for medical facilities, housing, HRD and other allied facilities will be earmarked in the MSP.
• To cater effectively to the needs of shipbuilding industry, GMB has proposed a set of benefits and incentives to the players interested in shipyard development.

Major incentives and benefits GMB envisages to provide are:

• GMB will acquire Government land and in turn will allot plots to the company on lease basis for shipbuilding/repair purpose for the license period.
• GMB will develop basic infrastructure in the form of road, water supply, power, drainage, capital dredging, navigational aids, gas and power supply etc. for the MSP/cluster development.
• GMB would also ensure that the key aspects like national security, defense, environment and economic development are safeguarded and addressed, appropriately at each shipbuilding location.
• Additionally, GMB will also permit the Shipyard Company to construct outfitting jetty of their own for outfit purpose specifically for the ships under construction.
• GMB will provide complete operational autonomy to the Shipyard company (within the framework of relevant legislations) in respect of the operation of the Shipyard.
• GMB will recommend notifying Marine Shipbuilding Park (MSP) as SEZ Fiscal and other benefits extended by Government of India under its various schemes would also be extended to Shipbuilding Company.

Future Plans of Gujarat Shipbuilding Industry

• The State is expected to harness a huge investment in the Shipbuilding Sector. The State Government along with GMB is committed to develop the industry and utilize all the competitive advantage of its positioning.
• GMB is promoting the strategy of cluster form of Shipyards development known as "Marine Shipbuilding Park” (MSP) at multiple locations with private player participation. The high-flying Shipbuilding cluster being developed is 'Dahej Shipbuilding cluster'. Moreover, GMB has also planned to develop MSP at Old Port Bhavnagar.
• In addition, various potential capital intensive projects are being developed by Afcons Infrastructure, Modest Infrastructure, Gujarat Integrated Maritime Complex Pvt. Ltd., etc. at various locations in Gujarat.
• GMB is also in process of conducting 'Techno-economic studies' through consultants for identifying locations for the development of new shipyard clusters along the Gujarat Coast.