Cochin Shipyard (CSL) is preparing to secure funding for its ambitious ₹6,000 crore expansion plan, set to unfold over the next five to six years. With a strong order pipeline and several new contracts in hand, the company is looking at multiple funding sources including government schemes, multilateral loans, blue bonds, and its own reserves.
Officials say the investments will cover shipbuilding, ship repair, and other related projects. CSL plans to use the Shipbuilding Financial Assistance (SBFA) policy, which offers subsidies of 20–25 percent after contracts are signed — a major boost to project profitability. For example, a ₹3,000 crore project could receive around ₹750 crore in incentives.
For its brownfield expansion, CSL aims to tap the shipbuilding development scheme, either through direct government assistance or low-interest commercial loans. Large infrastructure projects could be financed through partnerships with multilateral agencies from East Asian countries such as Singapore, which offer long-term, low-cost credit lines.
The company is also moving ahead with plans to issue blue bonds worth around $50 million and may raise additional capital through the domestic equity market if conditions are favorable.
Beyond this, Cochin Shipyard is evaluating the feasibility of a new greenfield shipyard, expected to require an investment of $2–3 billion, though it remains in the early planning stage.
With annual profits between ₹600–850 crore, CSL intends to use internal accruals to support part of its expansion. The shipyard has recently won new commercial shipbuilding orders from both European and Indian clients as it strengthens its global footprint.While Cochin Shipyard continues to expand into commercial projects, defence contracts — especially from the Indian Navy — still make up about two-thirds of its total order book, underscoring the company’s steady base and long-term growth potential.
