Defence Minister Rajnath Singh virtually laid the foundation stone for five brownfield expansion projects of Garden Reach Shipbuilders and Engineers (GRSE) and Yantra India Ltd on August 23. According to reports from CNBC TV18, Singh was accompanied by West Bengal Chief Minister Suvendu Adhikari during the foundation laying ceremony held in Kolkata. The projects comprise three facilities of GRSE and two of Yantra India, representing a significant investment in India's defence shipbuilding capabilities.
As reported by CNBC TV18, GRSE will invest ₹2,670 crore to expand its shipbuilding capacity through three new facilities in West Bengal. The investment breakdown includes ₹2,500 crore for the Raichak facility, ₹100 crore for the Shalimar facility, and ₹70 crore for the Kidderpore facility. The Defence Minister emphasized that the state will take steps to usher in a new renaissance of development, stating that news of closures and lockouts of factories in West Bengal has now been replaced by the launch of new projects. This substantial investment is expected to strengthen the state's industrial ecosystem through employment generation and increased opportunities for ancillary industries, particularly MSMEs.
The Raichak facility will receive the bulk of the investment with GRSE planning to spend more than ₹2,500 crore on the 32-acre riverside property. According to CNBC TV18, the facility features a 356-metre waterfront, 96-metre jetty and 8-10 metre draught and will be developed as a shipbuilding hub. The infrastructure will include a 200-metre dry dock, slipway, launching pad, jetties and block fabrication facilities. The facility will enable GRSE to construct warships of up to 200 metres as well as commercial vessels of up to 60,000 deadweight tonnes (DWT).
As reported by CNBC TV18, GRSE will invest nearly ₹100 crore to rejuvenate its 4-acre Timber Pond facility at Shalimar. The facility will cater to medium-sized shipbuilding and repairs and will include the restoration of a 130-metre dry dock and construction of a 120-metre slipway. Another ₹70 crore will be invested at the Damodar facility at Kidderpore Docks, which comprises an old workshop and a 25-metre waterfront. The facility will be used for medium-sized vessel repairs and the construction of electric ferries and other small craft.
According to CNBC TV18, these projects will strengthen GRSE's capabilities while supporting the revival of West Bengal's industrial ecosystem through employment generation and increased opportunities for ancillary industries, particularly MSMEs. The expansion is aimed at strengthening GRSE's indigenous shipbuilding capabilities and supporting future requirements of India's maritime forces and other defence and maritime customers. GRSE shares were trading 0.46% up at ₹2,613.50 as of 11:18 am following the capacity expansion announcement, with the stock having advanced over 7% so far this year.
