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Titagarh Rail Systems Ltd's subsidiary, Titagarh Naval Systems Ltd, is set to expand its shipyard in West Bengal with an investment of INR 550 crore, partly funded by a 25 % capital subsidy under the government's Shipbuilding Development Scheme. The expansion includes a new dry dock and slipway to construct Medium Range tankers. Since entering shipbuilding in 2016, the company has delivered over 35 vessels to clients including the Indian Navy and NIOT. The subsidiary's upgraded capacity will support 15-18 vessels annually, strengthening India's domestic shipbuilding industry and leveraging strategic partnerships for growth.
Titagarh Rail Systems Ltd, through its wholly owned subsidiary Titagarh Naval Systems Ltd, is progressing with plans to expand its shipbuilding facility in West Bengal. The project, with an estimated investment of INR 550 crore, is partly supported by a 25% capital subsidy under the government's Shipbuilding Development Scheme, designed to encourage expansion and modernization of operational shipyards. The expanded facility, spread over approximately 50 acres, will feature a dry dock of around 200 metres and a slipway, enabling the construction of Medium Range tankers. Advertisement
Originally, the expansion was planned with an investment of around INR 330 crore focusing only on slipway construction, block fabrication, and fabrication sheds. With the government subsidy, building a dry dock became commercially viable, prompting the increase in project scope and total investment. The subsidiary has applied for the capital subsidy under the scheme as a brownfield expansion, becoming one of the early participants in this government initiative aimed at boosting domestic shipbuilding capacity.
The board of Titagarh Rail Systems approved the transfer of its shipbuilding and maritime systems business to Titagarh Naval Systems Ltd at the end of last year, effective from the start of this year. This move allows the subsidiary to independently pursue growth opportunities under various government initiatives and maritime schemes. Investor presentations indicate that strategic partnerships will play a key role in expanding the shipbuilding business further.
Since entering the shipbuilding sector in 2016, Titagarh has delivered over 35 vessels to clients including the Indian Navy, Indian Coast Guard, and the National Institute of Ocean Technology (NIOT). The upgraded yard will have the capacity to build 15-18 vessels annually, each up to 160 metres in length, supporting both commercial and specialized maritime projects.
The Shipbuilding Development Scheme has earmarked INR 8,261 crore for brownfield expansions under a total allocation of INR 19,989 crore, with capital assistance covering operational shipyards seeking to enhance production infrastructure. Expansions can include new or adjacent premises, distant locations, or joint ventures, provided they are established under the same legal entity. The scheme aims to accelerate capacity addition within 2-4 years and requires brownfield shipyards receiving assistance to operate for at least 10 years post-project completion.
By leveraging policy support, Titagarh Naval Systems can implement technological upgrades, modernize its facilities, and enhance production capacity efficiently. The expanded yard will strengthen India's shipbuilding capabilities, offering opportunities for building larger commercial vessels and boosting strategic maritime infrastructure.
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