Defence Minister Lays Foundation for Five Expansion Projects in West Bengal

Defence Minister Rajnath Singh on Sunday virtually laid the foundation stone for five brownfield expansion projects of the Garden Reach Shipbuilders and Engineers (GRSE) and Yantra India Ltd (YIL) from GRSE Bhavan in Kolkata. The projects, which comprise three facilities of GRSE and two of YIL, involve a combined investment of nearly Rs 3,500 crore, as reported by multiple sources. The foundation ceremonies were conducted simultaneously at sites in Kidderpore, Shalimar, Raichak and Ishapore.

Singh was accompanied by West Bengal Chief Minister Suvendu Adhikari during the ceremony. The projects are part of the government's Make in India and Aatmanirbhar Bharat initiatives aimed at boosting domestic defence production.

The GRSE facilities will come up at Kidderpore in Kolkata, Shalimar in Howrah, and Raichak in South 24-Parganas, while the YIL projects are located at its Metal and Steel Factory in Ishapore.

India's Shipbuilding Ambitions

Singh emphasized India's capability to become a global shipbuilding hub, taking advantage of a 'vacuum' in the industry. He said that traditional shipbuilding nations like the UK, Netherlands, France and the USA have reduced their capacities over the decades due to high labour costs and lack of modernization, creating an opportunity for India.

"India is capable of seizing this opportunity to become a global shipbuilding hub," the Defence Minister said, pointing to three sectors—design, manufacturing, and maintenance, repair and overhaul (MRO). He said that India can become a world-class ship design hub and also emerge as a major hub for ship repair and overhaul in the Indian Ocean region, which would save foreign exchange and create thousands of jobs.

Singh also mentioned a 'capacity paradox' in the shipbuilding sector, noting that the demand for all types of vessels is rising worldwide, but traditional shipbuilders are reducing their capacity. He said that it takes around five years to build a ship and by the time a ship is completed, the technology used is sometimes outdated. This, he said, creates a golden opportunity for India, which has a large workforce, steel companies, and the will to adapt to new technologies.

He also pointed to the role of indigenous weapons, citing Operation Sindoor as evidence of their capability in securing energy supplies through conflict regions.

Rafik's Commercial Expansion

A GRSE official said that as part of its capacity expansion, GRSE has signed lease agreements with the Syama Prasad Mookerjee Port, Kolkata (SMPK) for two small shipyards and a 32-acre riverside property at Raichak. The Raichak facility, which will be developed as a shipbuilding hub with an investment exceeding ₹2,500 crore, will feature a 200-metre dry dock, block fabrication units, and a 356-metre waterfront, enabling construction of warships up to 200 metres and commercial vessels up to 60,000 DWT.

GRSE has also allocated approximately ₹100 crore for the Timber Pond facility at Shalimar and ₹70 crore for the Damodar facility at Kidderpore Docks. YIL's Metal and Steel factories, meanwhile, will see two upgrade projects worth over ₹750 crore, including a Rs 277.59 crore forging press and a Rs 473.84 crore Radial, to manufacture components for defence and other sectors.

Political Praise and Criticism

Singh praised the new government in West Bengal, saying the state was set to usher in a 'new renaissance of development'.

"The news of closures and lockouts of factories in West Bengal has now been replaced by the launch of new projects," he said, welcoming the change.

Chief Minister Suvendu Adhikari, speaking on the occasion, criticized previous governments in the state for not working with the Centre.

"Earlier governments in West Bengal did not work with the Centre for the development of the state," he said. He asserted that the 'negativity of 50 years has ended' and the double-engine government would ensure the state advances.

GRSE's Track Record and Expansion

Commodore P.R. Hari (Retd.), Chairman and Managing Director of GRSE, termed the initiative a landmark development for the defence public sector undertaking. He said the projects will enhance GRSE's capability and capacity and generate direct and indirect employment.

GRSE has delivered 118 warships, and the new facilities are expected to expand its capabilities in warship construction and refit. India has built around 270 warships, with GRSE accounting for nearly 40 per cent of them. GRSE has achieved up to 80 per cent indigenisation in its last three projects, and the last two were delivered ahead of schedule.

Singh mentioned that GRSE has built more than 800 vessels, including a commercial ship for a German company, and has already exported two warships. The new Raichak facility is expected to enable GRSE to bid for next-generation destroyers.

Investment: Varied Figures

The total investment for the five projects has been reported differently. Reports say the investment is nearly Rs 3,500 crore, while another says it is over Rs 3,400 crore. GRSE CMD Hari stated that the company's three facilities would involve an investment of nearly Rs 2,670 crore. All figures are derived from the same government, with the discrepancy unexplained.

Outlook

Singh said the projects will support the revival of West Bengal's industrial ecosystem through employment generation and providing opportunities for ancillary industries, particularly MSMEs. He also stressed the need for quality, timely delivery and on attractive rates.