GRSE to Build ₹3,000 Crore Shipyard in Gujarat Through JV With Modest Infrastructure

State-owned Garden Reach Shipbuilders & Engineers Ltd (GRSE) is set to form a joint venture with Modest Infrastructure Pvt Ltd to establish a ₹3,000 crore integrated greenfield shipyard at Ratanpar in Gujarat's Bhavnagar district. The project marks GRSE's first major expansion outside West Bengal and comes as India accelerates efforts to become a global shipbuilding hub. The Navratna PSU is also evaluating an entry into the container manufacturing business as part of its diversification strategy.

GRSE and Modest Infrastructure to Build ₹3,000 Crore Greenfield Shipyard

Garden Reach Shipbuilders & Engineers Ltd (GRSE) is in the final stages of forming a joint venture with Modest Infrastructure Pvt Ltd, a subsidiary of Dempo Shipbuilding and Engineering Pvt Ltd, to develop a large integrated shipyard at Ratanpar in Gujarat's Bhavnagar district.

The proposed project involves an investment of approximately ₹3,000 crore, which will be executed in phases. The facility will become GRSE's first shipbuilding venture outside its traditional base in Kolkata and is expected to significantly enhance the company's commercial shipbuilding capabilities.

The expansion comes shortly after GRSE was granted Navratna status by the Union Government, providing the company with greater operational and financial autonomy for strategic investments and joint ventures.

Project Overview

Particulars	Details
Project	Integrated Greenfield Shipyard
Location	Ratanpar, Bhavnagar, Gujarat
Investment	₹3,000 Crore
Partners	GRSE & Modest Infrastructure
Investment Mode	Phased Development
GRSE Status	Navratna PSU

Shipyard to Boost India's Commercial Shipbuilding Capacity

The upcoming shipyard will be developed on 58 hectares of land along the Gulf of Cambay, featuring a 1.4-kilometre waterfront. Of the total land requirement, 16.1 hectares are owned by Modest Infrastructure, while the remaining area will be leased from the Gujarat Government.

The facility has already moved closer to implementation after receiving a recommendation for environmental clearance from the Expert Appraisal Committee under the Ministry of Environment, Forest and Climate Change in May 2026.

Once operational, the yard will have the capability to build vessels weighing up to 45,000 Deadweight Tonnage (DWT) and will also provide advanced ship repair services.

Proposed Shipyard Capacity

Facility	Annual Capacity
Ships up to 45,000 DWT	1
Ships up to 20,000 DWT	3
Offshore Support & Platform Supply Vessels	6
Ship Repairs	Offshore Rigs & Support Vessels

Expansion Supports India's Maritime Growth Strategy

The project aligns with the Union Government's ambitious maritime vision of making India one of the world's leading shipbuilding nations. India aims to enter the top 10 global shipbuilding countries by 2030 and the top five by 2047, requiring a substantial increase in domestic shipbuilding capacity.

The government's recently approved ₹69,725 crore shipbuilding promotion package is expected to accelerate investments in new shipyards, infrastructure, and indigenous manufacturing capabilities across the sector.

GRSE's Gujarat expansion forms an important part of this national strategy while also helping the company diversify beyond defence shipbuilding into commercial vessels.

India's Shipbuilding Targets

Target	Goal
Top Global Shipbuilding Rank by 2030	Top 10
Target by 2047	Top 5
Government Support Package	₹69,725 Crore
Focus Areas	Commercial & Defence Shipbuilding

GRSE Plans to Expand Capacity Across India

Alongside the Gujarat project, GRSE is undertaking multiple expansion initiatives to increase its overall shipbuilding capacity.

The company currently has the capability to construct 28 platforms at its Kolkata shipyard. Ongoing modernization projects are expected to increase this capacity to 32 ships by the end of 2026.

GRSE is also developing two brownfield shipbuilding facilities in West Bengal and two greenfield projects, including the Gujarat yard, to capitalize on the anticipated surge in commercial shipbuilding demand.

GRSE Expansion Plans

Project	Status
Kolkata Modernisation	Under Progress
Current Capacity	28 Platforms
Capacity After Modernisation	32 Ships
Brownfield Facilities	2 (West Bengal)
Greenfield Facilities	West Bengal & Gujarat

Company Exploring Entry into Container Manufacturing

In addition to expanding its shipbuilding business, GRSE is evaluating an entry into the container manufacturing sector as part of its diversification strategy.

The move follows the Union Budget's announcement of a ₹10,000 crore scheme aimed at creating a globally competitive container manufacturing ecosystem in India and reducing dependence on Chinese manufacturers, which currently dominate the global container market.

If approved, the diversification could provide GRSE with an additional long-term revenue stream while supporting India's broader logistics and export infrastructure ambitions.

Diversification Strategy

Segment	Objective
Container Manufacturing	Reduce Import Dependence
Government Support	₹10,000 Crore Scheme
Long-Term Focus	Logistics & Industrial Growth

Modest Infrastructure Brings Existing Shipbuilding Expertise

Modest Infrastructure currently operates a shipbuilding and repair facility at Ramsar in Bhavnagar, capable of constructing vessels of up to 6,000 DWT.

The existing yard features a 220-metre waterfront, side-launching facilities, two dry docks, and the capability to simultaneously construct up to eight vessels, providing operational expertise that complements GRSE's large-scale expansion plans.

Market Outlook

The proposed ₹3,000 crore Gujarat shipyard marks a significant milestone in GRSE's transformation from a defence-focused shipbuilder into a broader maritime infrastructure player. Supported by Navratna status, government incentives, and India's long-term shipbuilding ambitions, the expansion is expected to strengthen GRSE's commercial shipbuilding capabilities while opening new opportunities in container manufacturing and maritime logistics.

1. What project is GRSE undertaking in Gujarat?

GRSE is forming a joint venture with Modest Infrastructure to develop a ₹3,000 crore integrated greenfield shipyard at Ratanpar in Gujarat.

2. What will be the capacity of the new shipyard?

The facility will be capable of building 45,000 DWT vessels, 20,000 DWT ships, offshore support vessels, and providing advanced ship repair services.

3. Why is this project important for GRSE?

It will be GRSE's first shipyard outside Kolkata and significantly expand its commercial shipbuilding capacity while supporting India's maritime growth strategy.

4. Is GRSE entering any new business segments?

Yes. GRSE is evaluating an entry into the container manufacturing business as part of its diversification plans, supported by the government's ₹10,000 crore container manufacturing initiative.