Swan Defence and Heavy Industries Ltd (SDHI), which operates India’s largest shipyard in Pipavav, Gujarat, is seeking around Rs 8.75 billion in government assistance to support its planned expansion under the recently launched Rs 200 billion shipbuilding cluster programme.

The company has signed a memorandum of understanding with the Gujarat Maritime Board for an overall development plan valued at Rs 42.5 billion. The expansion includes Rs 35 billion for upgrading the shipyard and Rs 5.5 billion for developing a maritime cluster, according to Chief Executive Officer Vipin Kumar Saxena.

“With the government’s Rs 700 billion maritime booster package and the policy focus on domestic shipbuilding, we see huge opportunities ahead,” Saxena said. “Foreign shipping lines are also closely observing India’s progress, and we are already in discussions with international clients. With our existing capacity, we are well-positioned to become a global player.”

The 600-acre Pipavav facility is capable of simultaneously handling multiple projects involving very-large (VL) class vessels. SDHI also plans to capitalise on emerging opportunities in the small and medium vessel categories, particularly in crude oil carriers, which have received a policy boost from the government.

“Commercial shipbuilding in India is set for a strong revival,” Saxena noted. “We expect both public and private sector demand to grow as domestic players begin sourcing vessels locally instead of abroad. This will mark a major step towards self-reliance in the shipbuilding industry.”

SDHI has recently entered into a strategic partnership with South Korean shipbuilding major Samsung Heavy Industries to access advanced technical expertise. The collaboration will help SDHI execute large and specialised global orders as part of its international expansion strategy.

Under the government’s brownfield expansion scheme, existing shipyards can claim financial assistance covering 25 per cent of their capital expenditure. A corpus of Rs 82.6 billion has been allocated to this initiative.

Saxena also revealed that SDHI plans to diversify into cranes and port equipment manufacturing — a largely untapped segment with significant growth potential. “We are also working on developing local component manufacturing capabilities to meet the minimum local content norms under the Shipbuilding Financial Assistance Scheme,” he said.

With India’s shipbuilding ecosystem gaining strong policy support, SDHI’s expansion aligns with the national drive to boost maritime manufacturing, attract global orders, and strengthen domestic industrial capacity.