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Reading: Rajnath Singh and Suvendu Adhikari Lay Foundation for Rs 3,500 Crore GRSE, YIL Expansion Projects
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Home » Rajnath Singh and Suvendu Adhikari Lay Foundation for Rs 3,500 Crore GRSE, YIL Expansion Projects

Indian Defence News

Rajnath Singh and Suvendu Adhikari Lay Foundation for Rs 3,500 Crore GRSE, YIL Expansion Projects

Five projects to strengthen India’s shipbuilding, ship repair and defence manufacturing capabilities while creating jobs and boosting MSMEs.

By Adhidev Jasrotia
Last updated: August 24, 2026
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Rajnath Singh with Shri Suvendu Adhikari

Raksha Mantri Rajnath Singh, along with West Bengal Chief Minister Suvendu Adhikari, virtually performed the Bhumi Pujan for five major expansion projects of Garden Reach Shipbuilders & Engineers Limited (GRSE) and Yantra India Limited (YIL) from GRSE Bhavan in Kolkata on August 23, 2026.

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With a combined investment of approximately Rs 3,500 crore, the projects are aimed at significantly expanding India’s capabilities in shipbuilding, ship repair, metallurgical production and defence manufacturing. The initiative is expected to provide a major boost to Aatmanirbhar Bharat, Make in India and the vision of Make for the World.

Three of the projects are being undertaken by GRSE at Kidderpore in Kolkata, Shalimar in Howrah and Raichak in South 24-Parganas. The facilities are designed to increase the shipyard’s capacity to construct and repair warships and commercial vessels. Two additional projects at YIL’s Metal and Steel Factory in Ishapore will strengthen indigenous capabilities in precision forging and the production of critical defence and strategic components.

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Addressing the gathering, Raksha Mantri Rajnath Singh said the projects represented the Government’s commitment to achieving greater self-reliance in defence manufacturing and strengthening India’s strategic autonomy. He emphasised that defence self-reliance was essential for ensuring that the country’s Armed Forces have reliable access to critical weapons, platforms and equipment.

Rajnath Singh said the experience of Operation Sindoor had demonstrated the importance of indigenous weapons and platforms and highlighted the role of domestic defence industries, research institutions, public sector undertakings and private companies in building the capabilities required by the Armed Forces.

“Self-reliance is not merely a policy; it is a force multiplier for battlefield capability,” the Raksha Mantri said, underlining the strategic importance of strengthening the domestic defence manufacturing ecosystem.

The expansion projects are also expected to generate significant employment opportunities and create greater business opportunities for ancillary industries and micro, small and medium enterprises. The projects are therefore expected to contribute not only to defence preparedness but also to industrial and economic development in West Bengal.

Rajnath Singh highlighted GRSE’s growing role in indigenous warship construction, noting that the shipyard has constructed more than 800 vessels. He also pointed to the high level of indigenous content being incorporated into new naval platforms, including next-generation offshore patrol vessels.

The Raksha Mantri also congratulated GRSE for achieving Navratna status and highlighted the shipyard’s contribution to strengthening India’s indigenous shipbuilding ecosystem.

The Raichak project represents the largest of the three GRSE expansion initiatives. Spread across approximately 32 acres with a 356-metre waterfront and an existing 96-metre jetty, the facility is being developed with an investment of more than Rs 2,500 crore.

The Raichak facility will enable GRSE to construct warships of up to 200 metres in length and commercial vessels of up to 60,000 tonnes deadweight. The planned infrastructure includes a 200-metre dry dock, a 200-metre slipway, a 200-metre ship-launching pad and two jetties measuring 120 metres and 86 metres.

The facility will also include block fabrication and consolidation areas, hull repair shops, stores and administrative infrastructure, substantially increasing GRSE’s ability to undertake large shipbuilding and repair projects.

Rajnath Singh said the Raichak facility would strengthen GRSE’s ability to bid for future-generation naval platforms, including next-generation destroyers.

At Shalimar in Howrah, GRSE is investing nearly Rs 100 crore to revive the Timber Pond facility, which has been acquired on a 30-year lease from the Syama Prasad Mookerjee Port, Kolkata. The four-acre facility will be developed into a shipbuilding and repair centre for medium-sized vessels.

The project includes restoration of a 130-metre dry dock, construction of a 120-metre slipway, shoreline protection work and installation of a dry dock gate and gantry crane. Facilities for block fabrication, workshops and stores will also be established.

At Kidderpore Docks in Kolkata, GRSE has acquired an old workshop and a 25-metre waterfront area, known as the Damodar facility. Located next to GRSE’s existing dry docks, the facility will receive an investment of approximately Rs 70 crore and will be developed for medium-sized vessel repairs, electric ferry construction and other small craft.

The two YIL projects at the Metal and Steel Factory in Ishapore represent a combined investment of more than Rs 750 crore and are aimed at modernising critical metallurgical and precision manufacturing capabilities.

One of the projects involves the installation of a 3,000-tonne Heavy Duty Hydraulic Open Die Forging Press equipped with two integrated rail-bound manipulators. The new press will replace the existing 2,650-tonne equipment that has been operational since 1976.

The new forging press is expected to support high-precision production of gun barrels, ammunition components and heavy defence forgings while improving operational safety and reducing downtime and maintenance requirements.

The facility is projected to generate annual savings of around Rs 25.58 crore and support an annual turnover of approximately Rs 500 crore. It is scheduled for completion within 26 months.

The second YIL project is a Radial Forging Plant involving an investment of Rs 473.84 crore. The facility will introduce advanced radial forging technology at MSF Ishapore and will include upstream and downstream manufacturing facilities.

The plant will expand YIL’s ability to manufacture super-alloy forgings, hollow tubes for aerial bombs, critical components for future ordnance systems, high-strength railway axles and components for nuclear reactors.

The facility will incorporate Industry 4.0 standards, energy-efficient operations and precision engineering capabilities. It is projected to generate an annual profit of approximately Rs 69 crore and is expected to have a payback period of around six years.

Rajnath Singh also highlighted the emerging opportunities for India in the global shipbuilding industry. He referred to what he described as a “Capacity Paradox”, in which global demand for naval and commercial vessels is increasing while traditional shipbuilding nations face declining capacity.

He said this situation could provide India with an opportunity to emerge as a major global shipbuilding hub by strengthening its design, manufacturing and Maintenance, Repair and Overhaul capabilities.

The Raksha Mantri emphasised that India’s pool of engineers, IT professionals and expertise in simulation and artificial intelligence could be leveraged to develop indigenous ship designs, secure intellectual property and eventually export these designs globally.

He also pointed to India’s skilled workforce, steel industry and extensive MSME ecosystem as advantages that could support the expansion of the domestic shipbuilding sector.

Rajnath Singh stressed that modernisation of shipyards and adherence to international quality standards would be essential for India to compete successfully in the global market. He also identified ship repair and MRO as an important opportunity for India, particularly given its strategic location in the Indian Ocean Region.

According to the Raksha Mantri, developing India into a major ship repair and overhaul hub could help save foreign exchange while generating thousands of employment opportunities.

West Bengal Chief Minister Suvendu Adhikari described the Bhumi Pujan as a historic moment for the state and said the projects would strengthen the capacities of GRSE and YIL while contributing to the revival of West Bengal’s industrial sector.

The projects are expected to create direct and indirect employment while generating new opportunities for MSMEs, suppliers and ancillary industries associated with the defence manufacturing and shipbuilding ecosystem.

The expansion of GRSE and YIL facilities marks a significant step towards strengthening India’s strategic manufacturing base. With increased shipbuilding capacity, modernised metallurgical facilities and greater integration of public sector enterprises, private industry and MSMEs, the projects are aimed at supporting both national defence preparedness and India’s ambition to become a globally competitive defence and shipbuilding hub.

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ByAdhidev Jasrotia
An expert in Indian defence affairs, military recruitment, and geopolitical strategy, brings a strong foundation in national security journalism. Recommended for the Indian Army with All India Rank 138.
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