Wouldn’t it be better if a dry dock was created for building ships rather than repair. Scheduled repair can be done in that dock by proper planning as was done with vikram recently as vicky was floating outside.
Depends, this facility is being built for the Indian Navy. Indian Navy doesn't want to outsource all repair and upgrade facilities to PSU or private shipyard. Among the two main reasons that I can think of is, to not loose the expertise among cadre, secondly secreacy and scheduling.
Our Nuclear Submarines are built at a IN owned facility called SBC ( ship building center). So it's possible that this facility can be used for building ships. But if it were to be, I think the ship would be highly specialized one.
You can think of the facility as analogous to BRD ( base repair deport) of IAF.
While Mirage upgrade are carried out by HAL, Mig 29s were upgraded by BRD. Similarly SU 30 MKI is overhauled by both BRD and HAL Nasik.