‘Days of factory closures over’: Rajnath Singh unveils Rs 3,500-crore defence expansion in Bengal

West Bengal Chief Minister Suvendu Adhikari and chief secretary Manoj Agarwal and senior officials from the Defence Ministry, GRSE and YIL attended the event.

GRSE signed lease agreements with Syama Prasad Mookerjee Port, Kolkata (SMPK) for two small shipyards on either bank of the Hooghly and a 32-acre riverside property at Raichak. The facilities are expected to expand the shipbuilder’s capacity for warship construction and repair while creating opportunities for ancillary industries and MSMEs.

Singh said the Raichak facility would be capable of handling warships of up to 200 metres in length and allow GRSE to bid for next-generation destroyers. Facilities at Timber Pond in Howrah and the Damodar Complex will strengthen other parts of the shipbuilding chain, he said.

Singh also highlighted GRSE’s record in indigenous defence productions, saying the shipyard had constructed more than 800 vessels and that next generation offshore patrol vessels under construction would have more than 80% indigenous content. Congratulating GRSE’s ‘Navratna’ status, he said, “This demonstrates that we are rapidly reducing our dependence on foreign sources.”

The two YIL projects will modernise facilities at the Metal and Steel Factory in Ishapore. Singh said YIL had invested more than Rs 750 crore at the facility, replacing legacy systems dating back to 1978 with Industry 4.0-capable precision manufacturing systems.

The facilities are expected to produce specialised metals for heavy artillery, naval weapons and other defence equipment. Singh linked the expansion to the government’s push for self-reliance in defence manufacturing, citing Operation Sindoor as an example of the importance of indigenous weapons and platforms.

“Self-reliance is not merely a policy; it is a force multiplier for battlefield capability. In this endeavour, the roles of GRSE and YIL will be crucial,” he said.

He also said India had an opportunity to emerge as a major global shipbuilding hub as demand for naval and commercial vessels rises while capacity in several traditional shipbuilding nations declines.

“If we modernise our manufacturing capacity and adhere to global quality standards, India can emerge as the world’s next major shipbuilding hub,” Singh said.

Adding that as the nation advances on the path of self-reliance, Singh said there is a need to consider the emerging “Capacity Paradox” in the global shipbuilding sector. He asserted that the demand for naval and commercial vessels is rising even as traditional shipbuilding nations witness a steady decline in capacity.

He identified the ship repair and maintenance, Maintenance, Repair and Overhaul (MRO) as another area where India could expand its presence, particularly in the Indian Ocean region.

Singh said establishing India as an MRO hub, which he termed as a “low hanging fruit”, would require comparatively lower capital investment while creating employment and reducing foreign exchange outgo.

Adhikari thanked Singh for bringing the projects to Bengal and described him as a “man of his word”. He said the investments would strengthen GRSE while contributing to the revival of the state’s industrial ecosystem through employment and opportunities for ancillary industries.

“These projects will strengthen the capabilities of GRSE, while supporting the revival of Bengal’s industrial ecosystem through employment generation and increased opportunities for ancillary industries, particularly MSMEs,” Adhikari said.

Singh urged GRSE to make full use of its expanded capacity and compete more aggressively in domestic and international markets to contribute to the vision of ‘Make in India, Make for the World’. He called for globally trusted quality, competitive costs and timely delivery to secure repeat orders and establish India as a preferred supplier.

Singh said the five projects would generate employment for thousands of people and provide a boost to MSMEs and allied industries.

Singh also said India was capable of emerging as a global shipbuilding hub and that the current situation in the international shipbuilding industry presented an opportunity for the country. The projects come as the new West Bengal government seeks to attract fresh industrial investment and revive existing industrial infrastructure.