Cochin Shipyard Ltd (CSL), a major government-owned shipbuilder, is set to expand with support from the Union Budget for 2025-26. The government has allocated ₹25,000 crore to the Maritime Development Fund (MDF) and introduced the revamped Shipbuilding Financial Assistance Policy (SBFAP 2.0). These measures aim to help CSL and India become a top global maritime hub.
Madhu S Nair, CSL’s chairman and managing director, is hopeful that this financial support, along with international collaborations, will help the company build large merchant ships quickly and compete with global players like South Korea, China, and Japan.
Expansion with New Facilities
CSL has spent ₹1,800 crore to build a new 31-meter dry dock, enabling it to take on large international orders. The company is also in talks with global shipbuilders for joint ventures in India, aiming to improve shipbuilding speed and efficiency.
Global Quality and Pricing
Nair believes that CSL needs to produce ships that meet global quality standards while keeping prices competitive. He sees long-term partnerships, like those in the automobile industry, as key to achieving this goal. CSL recently visited Korea and Japan to explore opportunities for building ships for both Indian and international markets.
India’s Growing Shipping Demand
As India’s economy grows, so will the need for more ships to transport goods. Right now, India relies heavily on foreign ships, spending $85 billion on freight charges, $75 billion of which goes to foreign companies. With the goal of becoming a $30-trillion economy, India will need more ships in the future.
Nair wants India to control more of its shipping industry, either through Indian-owned companies or foreign companies operating in India.
Future Plans
CSL is also looking to expand its ship repair facility at Willingdon Island with an investment of ₹1,500 crore in partnership with an international firm. The company is also developing an autonomous surface vessel (ASV) for both defense and civilian use, with partial government funding.
With the backing from the Union Budget and strategic collaborations, CSL is set to grow and play a major role in India’s maritime industry. The company’s focus on expanding infrastructure and building high-quality ships will help meet the growing demand for shipping both in India and worldwide.
