India will develop a mega shipbuilding project which would possess the technical capability to manufacture a Very Large Crude Carrier (VLCC), Ports, Shipping and Waterways Minister Sarbananda Sonowal announced during a visit to Kandla's Deendayal Port on Tuesday.
"The new Mega Shipbuilding Facility at the Kandla Port will develop technical capability in the country to manufacture big Very Large Crude Carrier (VLCC) or similar class of vessels with capacity up to 320,000 tonnes Deadweight Tonnage (DWT)," a ministry statement read.
The $3.4 billion facility at India's western seaboard will have the capacity to manufacture 32 new ships and repair 50 ships annually.
"Spread over an area of more than 8,000 acres, the new facility will have components like a marina, fishing harbour, townships and marine industrial cluster. The project is likely to unlock tremendous value for trade interests as well as employment avenues in the region, especially in the ancillary manufacturing and assembly units to come and operate in the cluster.
Sonowal said that the shipbuilding project would be developed under Prime Minister Narendra Modi's vision of 'Make in India, Make for the World'.
According to the International Energy Agency (IEA), India's oil demand is expected to surge to 1.2 million barrels per day by 2030, contributing a significant chunk to the global crude growth. At present, India meets around 85 percent of its crude requirements through imports, with Russia emerging as the largest source since 2023.
The Kandla Shipbuilding Project is one of the port infrastructure expansion inititiaves announced by Sonowal under a $6.6 billion plan.
The minister also announced the development of a new cargo terminal outside of Kandla creek estimated to cost around $3 billion. He said that the terminal would add around 135 metric tonnes per annum (MTPA) additional capacity to the Kandla port.
"The new port will handle all existing cargo jetties handling dry bulk cargo, with modern cargo handling equipment and more efficient evacuation systems. This will allow Kandla to be converted into liquid jetties, hence, building tremendous scope to handle liquid cargo. This will tremendously improve the waiting time of liquid tanker vessels and improvement in the Turnaround time of liquid vessels," the ministry explained.
It said that the port's proximity to the navigation channel would allow bigger vessels to dock at the Arabian Sea port.
"Ports are critical hubs for a nation's economy, serving as vital links to support growth and drive economic development. Enhancing capacity in port infrastructure is essential to meet our expanding ambitions," Sonowal said.
He remarked that ports would be playing a "pivotal" role in realising Prime Minister Modi's vision of 'Atmanirbhar Bharat' by 2047.