SOURCE: AFI
Pipavav Shipyard, India’s largest shipbuilding facility located in Gujarat, is poised for a remarkable comeback under the stewardship of Swan Defence and Heavy Industries Ltd (SDHI), formerly Reliance Naval and Engineering Ltd. Vivek Merchant, Director of SDHI, recently announced that the shipyard is on track to resume shipbuilding operations within a couple of months, marking a significant milestone in its revival after years of financial and operational challenges.
Since SDHI took control of the shipyard on January 4, 2024, following its acquisition through a National Company Law Tribunal (NCLT) resolution process, the facility has already demonstrated its capabilities. Merchant highlighted the completion of repair and refit work on four vessels, including three for the Indian Coast Guard. “We actually completed three Coast Guard vessels. These are Fast Patrol Vessels (FPVs) and Offshore Patrol Vessels (OPVs). OPVs are the Coast Guard’s largest ships. So, we can now repair two OPVs. I think that is a good demonstration,” Merchant said. Notably, all three Coast Guard refits were delivered ahead of schedule, underscoring the shipyard’s renewed efficiency.
In addition to the Coast Guard projects, SDHI completed a legacy job—a private-owned tug that had been lying incomplete at the yard. “In total, we have completed work on four vessels,” Merchant added, signaling that Pipavav is ready to reclaim its position as a maritime hub. These achievements have restored confidence in the shipyard’s ability to deliver high-quality work, with Merchant stating, “We have our credentials in place.”
Pipavav Shipyard’s journey has not been without hurdles. Once a flagship of India’s private defense manufacturing, the shipyard faced significant setbacks under its previous avatar as Reliance Naval and Engineering Ltd. A notable failure was the Shachi-class (Project 21), a series of five naval Offshore Patrol Vessels (OPVs) contracted in June 2010 for the Indian Navy. Valued at ?2,974.58 crore (approximately US$700 million in 2023), the project was marred by delays due to changes in design partners, financial troubles, and the shipyard’s acquisition by Reliance in 2016. Despite the launch of two vessels, INS Shachi and INS Shruti, in July 2017, the project was ultimately scrapped by the Ministry of Defense in October 2020 after a decade-long delay and the contractor’s heavy indebtedness.
The cancellation was a blow to Pipavav’s reputation, with posts on X reflecting frustration over the mismanagement that left four Shachi-class OPVs incomplete. The shipyard’s financial woes culminated in a corporate insolvency process in January 2020, triggered by defaulting on bank loans exceeding ?1,250 crore.
The acquisition by Swan Energy Ltd, in partnership with Hazel Mercantile Ltd, approved by the NCLT on December 23, 2022, has breathed new life into Pipavav. Since taking over, SDHI has invested in restoring the shipyard’s infrastructure, dredging facilities, and recruiting 1,200 personnel to bolster operations. The shipyard, sprawling over 600 acres, boasts India’s largest dry dock (662 x 65 meters), capable of building vessels up to 400,000 Dead Weight Tonnage (DWT), and a steel fabrication capacity of 144,000 tonnes annually—surpassing the combined capacity of India’s four defense PSU shipyards.
Merchant outlined an ambitious vision: “Our vision is to establish our shipyard as a leading maritime hub for the manufacturing of defense and commercial ships, and for the heavy engineering sector, on a global scale.” The shipyard’s state-of-the-art facilities, including a 600-tonne Goliath crane, modern fabrication units, and a 1.2-km seafront for afloat repairs, position it to meet both domestic and international demands.
Pipavav’s revival comes at a critical time for India’s maritime ambitions. The Indian Navy aims to expand to 175–200 warships by 2035, with 66 ships currently on order as of September 2024. Private shipyards like Pipavav are crucial to achieving this goal, especially as the Navy shifts toward indigenous production under the “Make in India” initiative. The shipyard’s past success in delivering 18 vessels, including Ice Class Panamax vessels of 74,500 DWT, and its recent repair work for the Coast Guard, demonstrate its potential to contribute significantly to India’s defense and commercial shipbuilding sectors.
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