Shipbuilding Industry – Gujarat:
ith 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 share of 47% of Indian shipbuilding order book with 3.92 Million DWT order book as on June 2008. Presently, Gujarat has six shipbuilding yards in operation, three under execution, eight under the process of approval and Gujarat Maritime Board (GMB) has envisaged for thirteen more notable shipbuilding projects.
With Indian companies planning to drop anchors on Gujarat’s shores, the State is likely to harbor huge investments in the development of shipyards. The sector has witnessed a major thrust with 45 proposed projects with an envisaged investment of INR 15,000 Crore by well established private players.
Among the players who have shown interest in developing shipyards in the state includes ABG Shipyard
, Dolphin Offshore Enterprises (India), AFCONS Infrastructure, Bharati Shipyard, Jindal Shipyard and Pipavav Shipyard
‘Make hay while the sun shines’ going with the quote Gujarat Maritime Board (GMB) is expecting to reap maximum benefit from the emerging Shipbuilding industry and as a result is formulating an independent policy for the Shipbuilding industry in Gujarat.
Shipbuilding is a highly labor intensive industry, contributing 60% of total share of major industries. Hence, GMB with its vision for economic development of the coastline is formulating shipbuilding policy for Gujarat.
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 Parks (MSP) at multiple locations with private player participation. The high-flying Shipbuilding cluster being developed is ‘Dahej Shipbuilding cluster’. In addition, various potential capital intensive projects are being developed by Pipavav Shipyard Ltd., Bharti Construction and Marine Ltd., ABG Shipyard, Affcon Infrastructure, Modest Infrastructure, Dolphin Offshore etc. at multiple locations in Gujarat.
Shipyards will be assigned as under:
Cluster Development Model of Shipbuilding / Marine Shipbuilding Park:
- Within the Marine Shipbuilding Parks.
- Within the port limits of the existing GMB ports
- Within the Private Ports
- Stand-alone proposals at isolated locations - only in exceptional cases.
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.
Key features of Marine Shipbuilding Parks
Major incentives and benefits GMB envisages to provide are:
- Five locations have been identified along the Gujarat Coast to develop it as ‘Marine Shipbuilding Park’. The five identified locations are:
1. North bank of Narmada River in Dahej region
2. Old Bhavnagar port area
3. Coastline in Bhavnagar district in the Gulf of Cambay
4. Coastal between Navlakhi to Jodiya
5. Coastline near Mandvi in the Gulf of Kutch
- 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.
- 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 (with in 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