Dugarajapatnam to Get Rs 15,000 Crore Greenfield Shipyard

Andhra Pradesh is set to strengthen its maritime and shipbuilding sector with Mazagon Dock Shipbuilders Limited (MDL) signing an agreement to establish a greenfield shipyard at Dugarajapatnam in Tirupati district with an investment of Rs 15,000 crore. The agreement was signed on Friday between the Defence Ministry-owned public sector undertaking and the National Shipbuilding and Heavy Industries Park–Andhra Pradesh (NSHIP-AP) in the presence of Chief Minister N. Chandrababu Naidu.

The investment will be made in phases over five to seven years, with the project expected to generate around 45,000 direct and indirect employment opportunities. Besides shipbuilding, the facility is likely to drive growth in marine engineering, manufacturing, transportation, logistics and other ancillary industries.

The government is positioning the project as a major step towards making Andhra Pradesh a leading shipbuilding destination. MDL will function as the anchor shipyard in the proposed Dugarajapatnam shipbuilding cluster. Chandrababu said the State would play a key role in India's ambition to become one of the world's top five shipbuilding nations by 2047, leveraging its long coastline, strategic location and industrial base.

The proposed shipyard will initially have a capacity to build vessels totalling 1.2 million gross tonnes (GT) annually, with scope for future expansion depending on market demand. The facility is expected to manufacture commercial vessels, including tankers, bulk carriers and other large specialised ships.

The larger Dugarajapatnam shipbuilding-cum-port cluster involves an estimated investment of Rs 38,767 crore. According to the techno-economic feasibility report, around Rs 29,254 crore is required for shipbuilding and ship-repair facilities, while Rs 9,513 crore is estimated for port development. The port component will be developed by the Government of India.

The cluster is being developed under the Centre's Shipbuilding Development Scheme. NSHIP-AP, a special purpose vehicle formed jointly by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, selected MDL as the anchor shipyard.

MDL CMD Captain Jagmohan (Retd.) said Dugarajapatnam had the land and maritime potential required for a globally competitive shipyard. VPA Chairperson Jasmeet Singh Bindra said the port authority, which holds a 50 per cent stake in NSHIP-AP, would support the cluster and coordinate with central agencies.

Infrastructure and Investments Department Secretary Kona Sasidhar termed MDL's selection a significant milestone and said the Andhra Pradesh Maritime Board would coordinate land, infrastructure and statutory clearances to facilitate speedy implementation.