Mazagon Dock Shipbuilders Limited (MDL) has signed an agreement with National Shipbuilding and Heavy Industries Park-Andhra Pradesh (NSHIP-AP) to develop a Rs 15,000 crore greenfield shipyard at Dugarajapatnam in Tirupati district, Andhra Pradesh. The project, to be built over five to seven years, is expected to generate around 45,000 jobs, according to an official release.
The agreement was signed in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu. MDL is a public sector undertaking under the Ministry of Defence, while NSHIP-AP is a special purpose vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority. MDL has been identified as the anchor shipyard for the proposed Dugarajapatnam shipbuilding cluster.
The shipyard is planned with a design capacity of 1.2 million gross tonnes per annum, with provision for expansion based on market requirements. It is expected to build commercial vessels, including tankers, bulk carriers and other large specialised ships. The project is part of Andhra Pradesh’s plan to develop a greenfield shipbuilding-cum-port cluster at Dugarajapatnam.
The state government said the facility could support employment and industrial activity across shipbuilding, marine engineering, manufacturing, logistics and allied sectors. Naidu said Andhra Pradesh intends to contribute to India’s ambition of becoming one of the world’s top five shipbuilding nations by 2047, using the state’s coastline, location and industrial base.
The wider Dugarajapatnam development is expected to include both a shipbuilding and ship-repair yard and a port. According to the techno-economic feasibility report cited in the official release, the shipbuilding and ship-repair yard is estimated to cost approximately Rs 29,254 crore, while the port is estimated at Rs 9,513 crore. The port is proposed to be developed by the Government of India.
The shipbuilding cluster is being developed under the Government of India’s Shipbuilding Development Scheme. NSHIP-AP will coordinate the project, with the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority responsible for facilitating the institutional and infrastructure framework. The Visakhapatnam Port Authority holds a 50 per cent share in NSHIP-AP and has said it will support coordination with the Centre and other central government agencies.
MDL chairman and managing director Captain Jagmohan (retd) said Dugarajapatnam offered the scale and maritime potential required for a globally competitive shipyard. He said MDL aimed to develop a modern facility serving domestic and international markets.
The Andhra Pradesh government said the Maritime Board would facilitate land, infrastructure and statutory clearances needed for timely development. State Infrastructure and Investment Secretary Kona Sasidhar described MDL’s selection as an important milestone for Andhra Pradesh’s maritime development. The next phase will involve project development, clearances and coordination among the state government, the maritime board, the port authority, MDL and central agencies.
