Mazagon Dock Shipbuilders Ltd (MDL) will invest around ₹15,000 crore to develop a Greenfield shipyard at Dugarajapatnam in Andhra Pradesh, with the project expected to generate nearly 45,000 direct and indirect jobs.
The Navratna defence public sector undertaking has signed a Memorandum of Understanding (MoU) with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) for development of the shipyard, which is planned with a design capacity of 1.2 million Gross Tonnage (GT) annually. The proposed investment will be subject to requisite approvals and statutory clearances.
The facility is expected to build a wide range of commercial vessels, including tankers, bulk carriers, container ships, LNG carriers and other specialised large vessels. The capacity may subsequently be expanded in line with market requirements.
The MoU was signed in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu by Capt. Jagmohan (Retd.), Chairman and Managing Director, MDL, and Praveen Adhithya, Managing Director, NSHIP-AP, in Amaravati.
The Andhra Pradesh Government is also planning a broader Shipbuilding-cum-Port Cluster at Dugarajapatnam. As per the Techno-Economic Feasibility Report, the shipbuilding and ship-repair yard is estimated to cost around ₹29,254 crore, while the proposed port is estimated at ₹9,513 crore. The port is proposed to be developed by the Government of India.
MDL has been identified as the Anchor Shipyard for the cluster, which is being developed under the Centre’s Shipbuilding Development Scheme (SbDS). NSHIP-AP is a special purpose vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority.
The project is expected to drive the growth of a supporting shipbuilding ecosystem, creating opportunities across marine engineering, manufacturing, logistics and allied industries.
Chief Minister Chandrababu Naidu said the Dugarajapatnam cluster, with MDL as the Anchor Shipyard, would strengthen Andhra Pradesh’s position as a major shipbuilding hub while attracting investments and ancillary industries to the State.
Capt. Jagmohan said Dugarajapatnam offered the scale and maritime potential required to develop a globally competitive shipyard, with MDL aiming to establish a modern facility serving both domestic and international markets.
Jasmeet Singh Bindra, Chairperson, Visakhapatnam Port Authority, said VPA, which holds a 50% shareholding in NSHIP-AP, would support development of the cluster and coordinate with the Centre and other Central Government agencies.
The Andhra Pradesh Maritime Board will facilitate the land, infrastructure and statutory clearances required for timely implementation of the project.