With the State’s 1,053 km coastline still underexploited despite port access every 280 km, the Government of Andhra Pradesh (GoAP) is gearing up to attract major investments in non-major ports and shipbuilding at the upcoming CII Partnership Summit.
Backed by the Andhra Pradesh Maritime Policy 2024–2029, the State is undertaking an ambitious expansion of maritime infrastructure, including an investment of over ₹5,000 crore in greenfield port projects scheduled for completion by the end of 2026. Official data indicates that Andhra Pradesh currently ranks second in cargo handling among non-major ports, with an impressive capacity of 118 million metric tonnes annually.
A recent presentation by a senior official from the Infrastructure and Investments Department at India Maritime Week in Mumbai highlighted the progress of new ports coming up at Machilipatnam, Ramayapatnam, Mulapeta, and the Kakinada Gateway. A major focus area is the development of a world-class shipbuilding cluster at Dugarajapatnam in Tirupati district, where the State aims to partner with leading global shipbuilders. In addition, medium and small-scale shipyards with repair facilities have been planned at Machilipatnam/Mulapeta and Juvvaladinne/Uppada/Nizampatnam.
The government has identified more than 40 coastal and creek locations suitable for shipbuilding activities, with an ambitious plan to create facilities capable of constructing cape-size vessels, Very Large Crude Carriers (VLCCs), and Very Large Gas Carriers (VLGCs). Negotiations are underway with prominent international shipbuilders to bring cutting-edge expertise and technology to these upcoming shipbuilding zones.
A suite of customised incentives has been rolled out to attract investors, including a 12% subsidy on Fixed Capital Investment (FCI) for sub-large and large projects—subject to installation timelines of five and seven years respectively. Mega and ultra-mega shipbuilding projects will be eligible for a 15% subsidy on FCI upon completion of installations within 10 years.
To encourage green initiatives, the government also proposes a decarbonisation subsidy ranging from 15% to 35% on FCI, aimed at accelerating the adoption of sustainable and low-carbon technologies in the maritime sector.
Further bolstering its blue economy strategy, the State has prioritised the integration of logistics and industry by promoting warehousing, cold chains, multimodal logistics parks, dry ports, container freight stations, plug-and-play industrial zones, and the construction of modern fishing harbours.
With this comprehensive roadmap, Andhra Pradesh is positioning itself as a future-ready maritime hub, set to unlock its vast coastal potential and attract global investors to foster industrial growth and sustainable development.
