Andhra Pradesh Advances Large Shipbuilding Cluster with 1.2 Million Ton Annual Capacity

en.Wedoany.com Reported - On November 12, India's Minister of Ports, Shipping and Waterways Sarbananda Sonowal confirmed at the 31st Confederation of Indian Industry Partnership Summit held in Visakhapatnam that the Dugarajapatnam Green Shipbuilding Cluster in Andhra Pradesh has received in-principle approval under the National Shipbuilding Mission framework. The project has a planned investment of approximately INR 300 billion (about USD 3.18 billion) and a designed annual shipbuilding capacity of 1.2 million gross tons. The project is being advanced by a special purpose vehicle jointly established by the Andhra Pradesh Maritime Board and the Visakhapatnam Port Authority.

The project is planned on 3,488 acres of land with approximately 2.1 kilometers of coastline, located along the Visakhapatnam–Chennai Industrial Corridor. After dredging, the harbor basin and approach channel are planned to reach a water depth of 13 to 15 meters, providing water conditions for large commercial vessel construction, ship repair, and port-supporting operations. According to project materials published by the Directorate General of Shipping of India, the site is the largest in land area among the five green shipbuilding clusters currently planned in India.

India's state-owned Mazagon Dock Shipbuilders Limited (MDL) has been selected as the anchor shipyard for the project. On September 18, 2026, MDL signed a memorandum of cooperation with the project company National Shipbuilding and Heavy Industry Park Andhra Pradesh Corporation (NSHIP-AP) to build a modern green shipyard at the site. MDL is expected to invest approximately INR 150 billion over the next 5 to 7 years. The project is expected to create approximately 45,000 direct and indirect jobs.

The new shipyard plans to undertake construction of oil tankers, bulk carriers, container ships, liquefied natural gas carriers, and other large specialized vessels, with MDL able to further expand capacity based on market demand. MDL previously focused on the construction of military vessels, submarines, and commercial ships; its participation in the Dugarajapatnam project extends its business footprint into the large commercial shipbuilding sector.

The project's preliminary feasibility studies separately accounted for shipyard and port facility investment. The techno-economic feasibility report estimates the construction cost of shipbuilding and ship repair facilities at approximately INR 292.54 billion, and supporting port works at approximately INR 95.13 billion, with the port planned to be developed by the Central Government of India.

At present, the revised techno-economic feasibility report of the project is still under review by the Directorate General of Shipping of India, and land acquisition is underway. The project company is held 50% each by the Andhra Pradesh Maritime Board and the Visakhapatnam Port Authority, and is responsible for coordinating land, port infrastructure, and engagement with shipyard investors. Planning review, land delivery, approval and permitting, and investment implementation arrangements remain to be completed.