West Bengal Set for ₹3,500 Crore Defence Manufacturing Expansion
West Bengal is preparing for a significant expansion of its defence and industrial manufacturing base, with five brownfield projects involving an investment of nearly ₹3,500 crore. The initiatives, being developed by Garden Reach Shipbuilders & Engineers (GRSE) and Yantra India Limited (YIL), are expected to strengthen shipbuilding, ship repair and specialised manufacturing capabilities across the state.
Defence Minister Rajnath Singh virtually laid the foundation stones for the projects from Kolkata on August 23, in the presence of West Bengal Chief Minister Suvendu Adhikari. The projects are located across Kolkata, Howrah, South 24-Parganas and Ishapore, bringing together multiple areas of defence-related industrial activity.
GRSE to expand shipbuilding and repair infrastructure
Three of the five projects are being undertaken by GRSE. The company's expansion plans cover facilities at Kidderpore in Kolkata, Shalimar in Howrah and Raichak in South 24-Parganas.
The largest investment is planned at Raichak, where GRSE is developing a new shipbuilding facility on a 32-acre riverside site. The location has a 356-metre waterfront, an existing 96-metre jetty and water depth of approximately 8 to 10 metres.
GRSE plans to invest more than ₹2,500 crore in developing the Raichak site. Once established, the facility is expected to handle construction of warships measuring up to 200 metres in length as well as commercial vessels with capacity of up to 60,000 tonnes deadweight.
The planned infrastructure includes a 200-metre dry dock, a 200-metre slipway, a ship-launching pad and two jetties. Facilities for block fabrication, repairs and administrative operations are also part of the development.
The project is intended to add substantial capacity to India's shipbuilding infrastructure at a time when the country is seeking a larger role in the global maritime manufacturing industry.
Existing facilities to receive fresh investment
The other two GRSE projects involve upgrades to existing facilities.
At Shalimar, the company plans to invest around ₹100 crore to revive its four-acre Timber Pond facility. The expansion involves restoring an existing dry dock and adding a new slipway along with supporting infrastructure for shipbuilding and repairs.
At Kidderpore, approximately ₹70 crore has been earmarked for expansion of the Damodar facility. The site is expected to focus on repairs of medium-sized vessels as well as the construction of electric ferries and other smaller vessels.
Together, these projects are designed to increase GRSE's ability to undertake ship construction and refitting work while also creating additional capacity for commercial and smaller marine vessels.
Yantra India focuses on advanced metallurgy
The remaining two projects are being developed by Yantra India at its Metal and Steel Factory in Ishapore. The combined investment in these facilities is expected to exceed ₹750 crore.
The projects will modernise the site's metallurgical manufacturing capabilities and support the production of specialised components for defence, railways and other strategic industries.
One of the planned facilities will feature a 3,000-tonne hydraulic open-die forging press, replacing older equipment that dates back to 1976. Another project involves a radial forging plant with an investment of ₹473.84 crore. The facility is intended to manufacture specialised forgings, hollow tubes, railway axles and other components for strategic applications.
The modernisation is also expected to bring greater use of Industry 4.0 technologies and energy-efficient manufacturing systems, allowing the facilities to improve precision and production efficiency.
Potential boost for local industries and employment
Beyond the direct investment in defence facilities, the projects could have a wider impact on West Bengal's industrial ecosystem. The expansion is expected to generate employment while creating additional business opportunities for ancillary manufacturers and service providers.
Micro, small and medium enterprises (MSMEs) could particularly benefit as larger defence and engineering facilities require a broader network of suppliers and specialised industrial services. A stronger local supply chain could also help reduce dependence on imported components for certain applications.
The projects therefore extend beyond increasing production capacity at individual public-sector facilities. They are also intended to strengthen the broader manufacturing network supporting India's defence and strategic industries.
India targets a larger role in global shipbuilding
The GRSE expansion comes as India seeks to increase its presence in the international shipbuilding industry. Defence Minister Rajnath Singh has highlighted the opportunity for India to emerge as a major global shipbuilding hub, particularly as traditional shipbuilding nations face capacity constraints.
For West Bengal, the ₹3,500 crore programme represents a combination of defence infrastructure development, industrial modernisation and employment generation. The projects at Raichak, Shalimar, Kidderpore and Ishapore could collectively strengthen the state's position in shipbuilding, engineering and strategic manufacturing.
As the new and upgraded facilities take shape, the investment is expected to add capacity not only to India's defence production ecosystem but also to the supporting industrial base required for large-scale manufacturing.
Reviewed by Aparna Decors
on
August 25, 2026
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