Mumbai: Garden Reach Shipbuilders & Engineers Limited (GRSE) has approved a capital budgetary outlay of Rs 2,896 crore to construct a greenfield shipyard at Raichak, marking an expansion of its shipbuilding infrastructure.
The proposal was cleared by the company’s board at its 423rd meeting held on September 21, according to a disclosure filed with the stock exchanges.
Major Capacity Push
GRSE said the planned facility would enhance its shipbuilding capacity across both naval and commercial segments. The project is part of a broader capacity-expansion programme involving three new facilities, including the proposed Raichak yard.
The latest announcement follows the company’s earlier disclosure dated August 24, when it outlined plans for facilities to support growth.
The Rs 2,896 crore approval represents the capital budget for construction of the greenfield shipyard. However, the filing did not disclose the project’s implementation schedule, funding mix, proposed annual capacity or expected date of commissioning.
Naval And Commercial Focus
The Raichak project is expected to give GRSE additional infrastructure to pursue opportunities beyond its existing operations. By targeting both naval and commercial shipbuilding, the company aims to expand the range of vessels it can construct and accommodate future order requirements.
A greenfield facility allows the shipbuilder to create new infrastructure at an undeveloped location, potentially offering flexibility in yard design, production flow and capacity planning.
The investment also underlines GRSE’s intention to strengthen its manufacturing base as demand develops across defence and civilian maritime markets.
Board Clears Outlay
The board meeting began at 2.30 pm and concluded at 4.30 pm on September 21. The company informed both the National Stock Exchange and BSE about the decision under Regulation 30 of SEBI’s listing regulations.
GRSE trades on the NSE under the symbol GRSE and on the BSE under scrip code 542011.
The company did not announce any change to its operations following the approval. Further details regarding construction milestones, financing arrangements and commissioning are expected as the project advances.
Disclaimer: This article is based on GRSE’s exchange filing; project timelines, financing details and outcomes remain subject to future company disclosures.
