Deendayal Port’s Shipbuilding Tender Gets a Competitive Makeover
To revitalise interest in its ambitious shipbuilding cluster project at the Deendayal Port Authority (DPA) in Gujarat, the Indian government is preparing to amend the tender qualification criteria. This decision follows the cancellation of the initial tender, which sought to lease 2,000 acres of port land for 30 years, but ultimately received only a single bid.
Government officials have acknowledged that the initial tender’s stringent requirements, such as high financial thresholds and mandatory experience in designing and constructing shipyards capable of handling Very Large Crude Carriers (VLCCs), acted as a deterrent for domestic shipbuilders and emerging players. Although several international firms, particularly those from South Korea, showed interest, the restriction against joint ventures further limited viable participation. The sole bid received was from Accurate Industrial Controls Pvt Ltd, backed by Korea Maritime Consultants Co., Ltd (KOMAC).
In response to these concerns, government sources have confirmed that the revised tender will adopt a more inclusive approach. The updated criteria are expected to relax financial and experience requirements, while also allowing participation through joint ventures and consortia. This strategic shift aims to attract smaller shipbuilders and new entrants, thereby fostering greater competition and innovation within the sector.
Industry experts have expressed optimism regarding these changes, stating that lowering entry barriers could enhance India’s ability to compete with established shipbuilding hubs such as China and South Korea. A senior analyst remarked that a broader base of participants would contribute to a more dynamic and competitive maritime manufacturing ecosystem.
This revision aligns with India’s broader maritime development strategy, which seeks to strengthen domestic manufacturing capabilities while reducing reliance on foreign-built ships. The shipbuilding hub at DPA is poised to play a crucial role in achieving this objective, offering state-of-the-art infrastructure to support large-scale vessel construction.
Additionally, the government has introduced the Shipbuilding Financial Assistance Policy (SBFAP), which provides subsidies for Indian-built vessels between 2024 and 2034. When combined with the revised tender norms, this policy is expected to bolster India’s domestic shipbuilding capacity significantly.
The revised tender is anticipated in the coming weeks, with stakeholders across the maritime and manufacturing sectors closely monitoring developments. It is hoped that these adjustments will generate renewed enthusiasm and position India as a prominent global hub for shipbuilding in the years to come.
Editor’s Note:
India’s shipbuilding sector has long struggled with restrictive entry barriers that favour only established players, leaving little room for innovation and competition. The government’s decision to revise tender norms for the Deendayal Port Authority’s ambitious shipbuilding cluster is a welcome shift in approach. By allowing joint ventures and easing financial thresholds, India is opening the doors for smaller firms and new entrants, which could bring fresh perspectives and much-needed diversity to the industry. The success of this initiative will depend on how effectively the revised criteria balance competitiveness with accessibility.
This move aligns with India’s broader vision to position itself as a global leader in shipbuilding. If executed correctly, it could reduce dependence on foreign-built vessels and strengthen domestic manufacturing capacity. However, policymakers must ensure that relaxed norms do not compromise quality and efficiency. The industry, too, must rise to the occasion, embracing collaboration and investing in technological advancements. Skoobuzz believes that if all stakeholders play their part, India’s shipbuilding future could be brighter than ever.
