State-owned defence shipbuilder Garden Reach Shipbuilders & Engineers Ltd (GRSE) is set to significantly expand its commercial shipbuilding footprint by forming a joint venture with Modest Infrastructure Pvt Ltd, a subsidiary of Goa-based Dempo Shipbuilding and Engineering Pvt Ltd, to establish a ₹3,000 crore integrated greenfield shipyard at Ratanpar in Gujarat’s Bhavnagar district.
The proposed project, which is in the final stages of joint venture formation, marks GRSE’s first shipyard outside its home base in Kolkata and aligns with the Government of India’s ambitious plan to strengthen domestic shipbuilding capabilities.
The investment will be made in phases, with the new facility planned along the shores of the Gulf of Cambay. Spread across 58 hectares with a 1.4-kilometre waterfront, the shipyard will have the capability to construct vessels of up to 45,000 Deadweight Tonnage (DWT).
According to sources familiar with the development, 16.1 hectares of land is already owned by Modest Infrastructure, while the remaining land will be leased from the Gujarat Government. The proposal has also received a key boost after the Expert Appraisal Committee (EAC) under the Ministry of Environment, Forest and Climate Change recommended environmental clearance for the project on 29 May.
Capacity to Build Multiple Vessel Types
Once operational, the Ratanpar facility will be capable of constructing:
- One vessel of up to 45,000 DWT annually
- Three vessels of 20,000 DWT
- Six offshore support vessels (OSVs) or platform supply vessels (PSVs)
In addition to shipbuilding, the yard will also provide afloat repair services for offshore rigs, offshore support vessels and platform supply vessels.
Expansion Backed by Government Shipbuilding Push
The expansion comes amid the Centre’s ₹69,725 crore shipbuilding revitalisation package, approved by the Union Cabinet, aimed at making India a global shipbuilding hub.
India has set an ambitious target of becoming one of the top 10 shipbuilding nations by 2030 and entering the top five globally by 2047. Achieving this goal will require increasing the country’s shipbuilding output nearly 40-fold to around 4.5 million Gross Tonnage (GT) by 2047.
Speaking during the company’s FY26 fourth-quarter earnings call, Cmde P. R. Hari (Retd.), Chairman and Managing Director of GRSE, said the company is aggressively expanding its infrastructure to tap the growing commercial shipbuilding market.
He noted that GRSE is undertaking the creation of two brownfield shipbuilding facilities in West Bengal and two greenfield facilities, including one in Gujarat, to support future demand generated under the government’s shipbuilding promotion initiatives.
GRSE currently has the capacity to construct 28 platforms at its Kolkata facilities, which is expected to increase to 32 platforms after ongoing modernisation projects are completed by December 2026.
GRSE Exploring Entry into Container Manufacturing
Apart from shipbuilding expansion, GRSE is also evaluating an entry into the container manufacturing sector as part of its diversification strategy.
The move follows the Union Budget 2026-27 announcement allocating ₹10,000 crore over five years to establish a globally competitive container manufacturing ecosystem in India and reduce dependence on China, which currently dominates global container production.
As a Navratna public sector enterprise, GRSE enjoys greater financial and operational autonomy, enabling faster strategic investments, expansion projects and joint ventures.
Modest Infrastructure’s Existing Facility
Modest Infrastructure presently operates a shipbuilding and repair yard at Ramsar, Bhavnagar, capable of constructing medium-sized vessels of up to 6,000 DWT.
The Ramsar facility features a 220-metre waterfront, accommodates vessels up to 110 metres in length and 20 metres in beam, and includes two dry docks capable of simultaneously constructing or repairing eight vessels.
The proposed Ratanpar shipyard is expected to significantly enhance India’s commercial shipbuilding capacity while strengthening Gujarat’s position as a major maritime manufacturing and shipbuilding hub.
