The central government has granted in-principle approval to a proposed ₹30,000-crore shipbuilding cluster at Dugarajapatnam in Andhra Pradesh’s Tirupati district, a project aimed at creating a major shipbuilding and ship repair center on India’s east coast.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal announced the approval on November 12 at the 31st Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam. The project has been cleared in principle under the National Shipbuilding Mission.
The proposed cluster is expected to have an annual shipbuilding capacity of 1.2 million gross tonnes (GT). It is planned to include a large shipyard, ship repair facilities and units that manufacture heavy engineering equipment. The central government is seeking to expand India’s shipbuilding capacity and attract investment from domestic and international companies through the project.
Sonowal invited global shipbuilders, technology companies and equipment manufacturers to explore investment opportunities in Andhra Pradesh. The Ministry of Ports, Shipping and Waterways said the state has a coastline of around 1,053 km and is well placed to develop ports, shipbuilding and maritime industries.
A 3,488-acre site with 2.1 km of waterfront
The Dugarajapatnam project will cover 3,488 acres, making it the largest of five greenfield shipbuilding clusters shortlisted under the national program. The site has around 2.1 km of waterfront and is located along the Visakhapatnam-Chennai Industrial Corridor.
Planned water depth at the site is between 13 and 15 meters after dredging, which would allow it to accommodate large vessels. The cluster is to have an anchor shipyard, along with ship repair yards and heavy engineering facilities. Its planned infrastructure includes dry docks, ship lifts and outfitting berths, facilities that would let companies build, repair and prepare ships for operations.
The cluster-wide target is an annual capacity of 1.2 million GT. Gross tonnage is a measure based on the internal volume of a ship rather than its weight. Under the Shipbuilding Development Scheme, at least one anchor shipyard in the cluster must reach an annual capacity of 500,000 GT within 10 years of commissioning.
The large land area is also expected to provide space for companies that supply equipment, components and other services to shipyards, helping create an industrial network around the main shipbuilding facility.
Joint venture to handle development
The Andhra Pradesh Maritime Board (APMB) and Visakhapatnam Port Authority (VPA) have formed a 50:50 joint venture to take the project forward. The company, National Shipbuilding and Heavy Industries Park Andhra Pradesh Limited (NSHIP-AP), will handle investor discussions, land-related checks and talks with companies interested in setting up the main shipyard.
NSHIP-AP will also be responsible for developing common infrastructure, including dredging, waterfront facilities, internal transport systems and utilities. It will help allot land to shipyards and other companies that want to set up units within the cluster. The central government and the Andhra Pradesh government are expected to work together to develop facilities that can be used by multiple shipbuilders and suppliers.
Dugarajapatnam is one of five greenfield shipbuilding clusters that have received in-principle approval. The others are Thoothukudi in Tamil Nadu, Kucchadi in Gujarat, Dighi in Maharashtra and Kendrapara in Odisha. The projects form part of the central government’s wider plan to develop shipbuilding and ship repair facilities across the country.
Construction timeline still unclear
Although the project has received in-principle approval, several steps remain before construction can begin. The Directorate General of Maritime Administration (DGMA) is reviewing the revised techno-economic feasibility report for Dugarajapatnam. Land acquisition is progressing, while discussions with companies interested in becoming the anchor shipyard operator are still open. No anchor shipyard investor has been officially confirmed.
The ₹30,000-crore figure is the proposed investment for the entire cluster. The government has not announced a detailed funding plan, a construction start date or an expected completion date. The project will therefore need to move through further planning, investor selection and infrastructure development before it becomes operational.
Part of a wider maritime push in Andhra Pradesh
The shipbuilding cluster is part of Andhra Pradesh’s larger plan to expand its port and shipping infrastructure. Four greenfield port projects at Mulapeta, Machilipatnam, Ramayapatnam and Kakinada are also under construction. The central government believes these developments can improve cargo movement, support industries and create more opportunities for trade.
At the CII Partnership Summit, Sonowal said Andhra Pradesh had the potential to become an important maritime gateway for India’s eastern and central regions. If the Dugarajapatnam project moves ahead as planned, it could help the state become an important center for shipbuilding and ship repair. It could also attract companies involved in marine engineering, equipment manufacturing and logistics.
For now, the in-principle approval is an important step, but the project still needs investors, land development and other clearances before work can begin.
