GRSE and YIL Announce ₹3,420 Crore Expansion Plan Across Shipbuilding and Defence Manufacturing Facilities

Key Highlights

  • GRSE plans ₹2,670 crore investment across three expansion projects in West Bengal.
  • Raichak shipbuilding hub to receive investment of more than ₹2,500 crore.
  • Raichak facility will include a 200-metre dry dock and support ships up to 200 metres.
  • Timber Pond facility at Shalimar to be upgraded with nearly ₹100 crore.
  • Damodar facility at Kidderpore Docks to receive around ₹70 crore.
  • YIL plans more than ₹750 crore investment in two forging facilities at Ishapore.
  • ₹277.59 crore forging press to replace the existing 2,650-ton press.
  • ₹473.84 crore radial forging plant to manufacture specialised defence and strategic components.
  • Projects are aimed at strengthening domestic shipbuilding and defence manufacturing capabilities.
  • Expansion is expected to create opportunities for ancillary industries and MSMEs in West Bengal.

Garden Reach Shipbuilders & Engineers Ltd. (GRSE) and Yantra India Limited (YIL) have announced major expansion plans for shipbuilding and defence manufacturing capabilities in West Bengal, with investments spanning new and upgraded facilities at Raichak, Shalimar, Kidderpore Docks and Ishapore.

The foundation stone for five brownfield expansion projects was laid at GRSE Bhavan in Kolkata on August 23, 2026, in the presence of Defence Minister Rajnath Singh and West Bengal Chief Minister Suvendu Adhikari. The projects are aimed at expanding manufacturing infrastructure, supporting future defence and maritime requirements and strengthening domestic production capabilities.

GRSE to Invest ₹2,670 Crore in Three Facilities

GRSE is undertaking capacity expansion across three facilities with a combined investment of ₹2,670 crore. The projects include a major shipbuilding hub at Raichak, the rejuvenation of the Timber Pond facility at Shalimar and development of the Damodar facility at Kidderpore Docks.

The Raichak project carries the largest investment of more than ₹2,500 crore. GRSE has signed lease agreements with Syama Prasad Mookerjee Port, Kolkata for two small shipyards on either bank of the Hooghly, along with a 32-acre riverside property at Raichak.

The proposed Raichak facility will have a 356-metre waterfront, a 96-metre jetty and an 8–10 metre draft. It will include a 200-metre dry dock, slipway, launching pad, jetties and block fabrication facilities. The infrastructure is planned to support construction of warships of up to 200 metres and commercial vessels with capacity of up to 60,000 DWT.

At Shalimar, the four-acre Timber Pond facility will receive nearly ₹100 crore for medium-sized shipbuilding and repair activities. The project includes restoration of a 130-metre dry dock and construction of a 120-metre slipway.

GRSE will also invest around ₹70 crore in the Damodar facility at Kidderpore Docks. The facility, which includes an existing workshop and 25-metre waterfront, is planned to support repairs and construction of medium-sized vessels, electric ferries and other small craft.

YIL Plans Two Defence Manufacturing Facilities at Ishapore

Yantra India Limited will invest more than ₹750 crore in two facilities at its Metal and Steel Factory in Ishapore. The projects are focused on strengthening indigenous metallurgical and defence manufacturing capabilities.

A ₹277.59-crore 3,000-ton Heavy Duty Hydraulic Open Die Forging Press will replace the existing 2,650-ton press. The new equipment is expected to manufacture gun barrels, ammunition components and heavy defence forgings.

The second project involves a ₹473.84-crore Radial Forging Plant. It will manufacture specialised products including super alloy forgings, aerial bomb tubes, ordnance hardware, railway axles and components for nuclear reactors.

The facilities will incorporate Industry 4.0 and energy-efficient technologies, with the stated objective of supporting high-end manufacturing and reducing dependence on imported components across defence, railway and other strategic sectors.

Focus on Shipbuilding and Defence Manufacturing

The combined expansion programme is expected to increase the manufacturing and shipbuilding capabilities of both GRSE and YIL. The projects are also intended to support the development of supporting industries and create opportunities for ancillary businesses, particularly micro, small and medium enterprises.

GRSE has highlighted the expansion as part of efforts to increase its capacity for naval and commercial vessel construction while supporting India’s domestic defence manufacturing objectives.

The projects also align with the broader policy focus on self-reliance in defence production and the development of domestic industrial capabilities.

Expansion to Support Future Maritime Requirements

The Raichak shipbuilding hub is expected to provide additional infrastructure for larger and more complex shipbuilding projects. The combination of dry-dock, slipway, jetty and block fabrication infrastructure is designed to expand GRSE’s ability to handle both defence and commercial vessels.

Meanwhile, the upgraded facilities at Shalimar and Kidderpore are expected to complement existing capabilities by focusing on medium-sized vessels, ship repairs and smaller craft.

The YIL investments at Ishapore will add specialised forging capacity for defence and strategic applications, potentially strengthening the domestic supply chain for critical components.

With the implementation of these projects, GRSE and YIL are set to expand their manufacturing footprint in West Bengal while adding capacity across shipbuilding, vessel repair, defence forging and strategic manufacturing segments.

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