India’s defence manufacturing sector is set for another major expansion with projects worth approximately ₹3,500 crore aimed at strengthening the country’s shipbuilding, ship repair, metallurgical and defence production capabilities. The initiatives involving Garden Reach Shipbuilders & Engineers (GRSE) and Yantra India Limited (YIL) are expected to provide a significant boost to the Government of India’s vision of Aatmanirbhar Bharat and Make in India.
The official PIB release confirms that the Bhumi Pujan took place on August 23, 2026, covering three GRSE projects and two Yantra India Limited projects, with a combined investment of about ₹3,500 crore.
Five Major Defence Expansion Projects Announced
The five projects include three major expansion initiatives of Garden Reach Shipbuilders & Engineers Limited (GRSE) and two advanced manufacturing projects of Yantra India Limited (YIL).
The GRSE projects are located at:
- Raichak, South 24-Parganas
- Timber Pond, Shalimar, Howrah
- Kidderpore Docks, Kolkata
The two YIL projects will be established at the Metal and Steel Factory (MSF), Ishapore. Together, these projects are designed to expand India’s capacity in shipbuilding, ship repair, heavy engineering, metallurgy and strategic defence manufacturing.
GRSE’s ₹2,500+ Crore Raichak Shipbuilding Hub
The biggest of the expansion projects is GRSE’s proposed shipbuilding hub at Raichak, involving an investment of more than ₹2,500 crore.
The 32-acre riverside facility has a 356-metre waterfront and will significantly expand GRSE’s ability to construct large naval and commercial vessels. The proposed infrastructure includes:
- A 200-metre Dry Dock
- A 200-metre slipway
- A 200-metre ship launching pad
- Two jetties
- Block fabrication and consolidation facilities
- Hull repair workshops
- Administrative and support infrastructure
The facility is expected to have the capability to build warships up to 200 metres in length and commercial vessels of up to 60,000 tonnes deadweight capacity. The expanded capacity could also enable GRSE to compete for future large naval platforms, including next-generation destroyers.
Shalimar and Kidderpore Projects to Boost Ship Repair
GRSE is also expanding its footprint in Howrah and Kolkata.
At Timber Pond in Shalimar, GRSE plans to invest nearly ₹100 crore to revive the facility as a shipbuilding and repair centre for medium-sized vessels. The project includes restoration of a 130-metre Dry Dock, construction of a new slipway, shoreline protection and workshop facilities.
At the Damodar facility in Kidderpore Docks, GRSE plans an investment of around ₹70 crore. The facility will support the repair of medium-sized vessels and the construction of electric ferries and other small craft.
Yantra India Limited to Strengthen Strategic Metallurgical Capacity
The two YIL projects at MSF Ishapore represent a combined investment of more than ₹750 crore.
The first project is a 3,000-ton Heavy Duty Hydraulic Open Die Forging Press, replacing an older 2,650-ton press that has been operational since 1976. The modern facility is expected to improve precision manufacturing for critical gun barrels, ammunition components and other heavy defence forgings.
The second major project is an advanced Radial Forging Plant, which will expand India’s capability to manufacture strategic components, including super-alloy forgings, critical hardware for future ordnance systems, railway axles and components for nuclear infrastructure. The plant will incorporate Industry 4.0 standards and advanced precision engineering.
Rajnath Singh Highlights Importance of Self-Reliance
Addressing the ceremony, Raksha Mantri Rajnath Singh emphasised that self-reliance in defence manufacturing is critical for India’s strategic autonomy and battlefield capability.
He highlighted the growing importance of indigenous weapons, platforms and manufacturing infrastructure and said that GRSE and YIL will play an important role in strengthening the domestic defence ecosystem.
The Raksha Mantri also pointed to what he described as an emerging global “Capacity Paradox”—rising demand for naval and commercial vessels while traditional shipbuilding nations face declining manufacturing capacity. According to him, this presents a major opportunity for India to emerge as an important global shipbuilding hub.
India Can Become a Major Shipbuilding and MRO Hub
India has significant advantages, including a large pool of engineers, IT professionals, skilled workers, a strong steel industry and an expanding MSME ecosystem.
Rajnath Singh stressed the importance of modernising shipyards, maintaining international quality standards and developing indigenous ship designs.
He also highlighted the potential of Maintenance, Repair and Overhaul (MRO) activities, particularly in the Indian Ocean Region. Developing India as a reliable ship repair and overhaul hub could help save foreign exchange while generating significant employment opportunities.
Major Employment and MSME Opportunities
Beyond defence production, the ₹3,500 crore expansion programme is expected to generate employment and create new opportunities for ancillary industries, suppliers and MSMEs.
The projects could strengthen the industrial ecosystem of West Bengal by increasing demand for:
- Engineering and fabrication services
- Steel and specialised materials
- Precision manufacturing
- Marine equipment
- Defence components
- Logistics and supply-chain services
- Technology and automation solutions
The West Bengal Chief Minister described the initiative as an important development for the state’s industrial sector and said that the projects would enhance capacity while creating opportunities for allied industries and MSMEs.
GRSE’s Growing Role in India’s Naval Shipbuilding
GRSE has already established itself as one of India’s important defence shipyards. According to the Ministry of Defence, the shipyard has constructed more than 800 vessels to date.
Its upcoming projects and expanded infrastructure are expected to support the construction of next-generation warships and commercial vessels. The Ministry also noted that GRSE’s next-generation offshore patrol vessels under construction are expected to have more than 80% indigenous content, reflecting the growing localisation of India’s defence manufacturing ecosystem.
Why the ₹3,500 Crore Expansion Matters
The five expansion projects are significant because they address several strategic requirements at the same time:
1. Increased Shipbuilding Capacity
The new GRSE infrastructure will allow India to build and repair larger and more sophisticated naval and commercial vessels.
2. Stronger Indigenous Defence Manufacturing
The YIL forging projects will strengthen domestic production of critical metals and strategic components.
3. Reduced Import Dependence
Greater domestic manufacturing capacity can reduce dependence on foreign suppliers for strategic defence and industrial components.
4. Employment Generation
The projects are expected to create direct and indirect employment and provide opportunities for MSMEs and ancillary industries.
5. Export Potential
Improved manufacturing capacity, quality standards and competitive costs could help Indian defence companies compete more effectively in international markets.
A Major Step Towards Aatmanirbhar Bharat
The Bhumi Pujan for these five projects marks an important step in India’s long-term defence industrial strategy. With more than ₹3,500 crore being invested in advanced shipbuilding, ship repair and metallurgical infrastructure, GRSE and Yantra India Limited are set to play an increasingly important role in strengthening India’s defence production capabilities.
The expansion is also aligned with the broader vision of Aatmanirbhar Bharat, Make in India and Make for the World. If the new facilities achieve their planned capacities, they could support India’s ambition to become not only more self-reliant in defence manufacturing but also a stronger player in the global shipbuilding and strategic manufacturing market.
Conclusion
The launch of the five GRSE and Yantra India Limited expansion projects is a major development for India’s defence manufacturing sector and West Bengal’s industrial ecosystem. From the massive Raichak shipbuilding hub to advanced forging facilities at Ishapore, the projects are designed to strengthen critical capabilities across the defence production chain.
With approximately ₹3,500 crore in planned investment, the initiative could boost indigenous manufacturing, support thousands of jobs, create opportunities for MSMEs and strengthen India’s position in global shipbuilding, ship repair and strategic defence production.
Official Source
For the complete details and specifications of all five projects, read the official PIB Press Release.