Andhra Pradesh Chief Minister N. Chandrababu Naidu has sought the Centre’s support to establish a shipbuilding centre at Dugarajapatnam, as the state looks to expand its maritime infrastructure and attract investment in shipbuilding, ship repair and marine engineering.
During a meeting with Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal in New Delhi on October 8, Naidu discussed the proposed shipbuilding centre along with the development of a terminal and related infrastructure at Mulapeta Port in Srikakulam district.
The proposed Dugarajapatnam project forms part of Andhra Pradesh’s plan to develop an integrated shipbuilding and ship repair cluster. The state has identified 3,488 acres for the greenfield cluster, which has received in-principle approval under the Centre’s Shipbuilding Development Scheme.
A significant step towards the project was taken in September 2026, when Mazagon Dock Shipbuilders Limited (MDL) signed a memorandum of understanding with National Shipbuilding and Heavy Industries Park–Andhra Pradesh (NSHIP-AP) to establish a greenfield shipyard at Dugarajapatnam.
MDL has envisaged an investment of approximately ₹15,000 crore over five to seven years, subject to statutory approvals and clearances. The proposed facility is expected to have a design capacity of 1.2 million gross tonnes annually and generate direct and indirect employment for around 45,000 people. It is planned to build commercial vessels, including tankers, bulk carriers, container ships and liquefied natural gas carriers.
Naidu has emphasised that developing shipbuilding, ship repair and marine engineering alongside port infrastructure could create substantial employment opportunities, attract industrial investment and strengthen supporting logistics and manufacturing industries.
The proposed centre is expected to contribute to India’s efforts to expand domestic shipbuilding capacity and develop a stronger maritime industrial ecosystem. The state is seeking continued cooperation from the Centre to advance the project and strengthen Andhra Pradesh’s position in the country’s maritime economy.