- MDL–NSHIP-AP pact sets stage for greenfield facility with 1.2-million-tonne capacity
- Project could generate nearly 45,000 direct and indirect jobs over five to seven years
- Dugarajapatnam cluster to target tankers, container ships, LNG carriers and other specialised vessels
- Move aligns with India’s ambition to become a global shipbuilding powerhouse by 2047
- Ancillary industries and marine engineering ecosystem expected to grow around the proposed yard
NE DEFENCE BUREAU
AMARAVATI (AP), SEPT 18
A proposed ₹15,000-crore investment over the next five to seven years could turn Dugarajapatnam into a major shipbuilding and maritime-industrial destination, with Mazagon Dock Shipbuilders Limited (MDL) and National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) signing an MoU for a greenfield shipyard that is projected to generate nearly 45,000 direct and indirect jobs in Andhra Pradesh.
The agreement, signed on Friday in the presence of Chief Minister N. Chandrababu Naidu in Amaravati, envisages a modern shipbuilding facility with a design capacity of 1.2 million Gross Tonnage per annum, with scope for expansion in line with market requirements.
For Andhra Pradesh, the project represents an attempt to convert its long coastline and strategic maritime location into a large-scale industrial opportunity. For MDL, the proposed facility marks a major expansion into commercial shipbuilding, beyond its established defence shipbuilding capabilities.
₹38,000-crore cluster takes shape
The Dugarajapatnam project is part of the Andhra Pradesh Government’s larger vision for a Shipbuilding-cum-Port Cluster. The Techno-Economic Feasibility Report estimates the shipbuilding and ship repair yard at approximately ₹29,254 crore, while the port component is estimated at ₹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 (SbDS). NSHIP-AP, a Special Purpose Vehicle formed jointly by the Andhra Pradesh Maritime Board (APMB) and Visakhapatnam Port Authority (VPA), has identified MDL as the Anchor Shipyard.
The MoU was signed by Capt. Jagmohan (Retd.), Chairman & Managing Director, MDL, and Praveen Adhithya C.V., IAS, Managing Director, NSHIP-AP.
From ships to an industrial ecosystem
The proposed yard is envisaged not merely as a ship-manufacturing facility but as a catalyst for a wider maritime ecosystem.
With capacity to build tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels, the facility is expected to create demand for ancillary manufacturers, marine engineering companies, logistics providers and other support industries.
MDL plans to invest about ₹15,000 crore over the next five to seven years, subject to requisite approvals and clearances. The proposed employment generation of approximately 45,000 direct and indirect jobs could provide an additional economic multiplier for the region.
Chief Minister N. Chandrababu Naidu said the State wanted to occupy a prominent position in India’s emerging shipbuilding ambitions.
“India has set an ambitious vision of becoming one of the world’s top five shipbuilding nations by 2047. Andhra Pradesh is committed to being at the forefront of this journey by leveraging its long coastline, strategic location and industrial ecosystem. The development of the shipbuilding cluster at Dugarajapatnam, with MDL as the Anchor Shipyard, will position Andhra Pradesh as a major shipbuilding hub and attract a strong ecosystem of ancillary industries and investments to the State,” he said.
MDL expands commercial footprint
For MDL, the Dugarajapatnam project is positioned as a strategic diversification into large-scale commercial shipbuilding and is aligned with Maritime Amrit Kaal Vision 2047.
Capt. Jagmohan (Retd.) said the location offered the scale required for a globally competitive facility.
“Dugarajapatnam offers the scale and maritime potential required for developing a globally competitive shipyard. With the support of the Government of Andhra Pradesh and NSHIP-AP, MDL intends to create a modern shipbuilding facility capable of serving both domestic and international markets. The project will also catalyse the development of a strong ancillary and marine engineering ecosystem and contribute significantly to employment generation in the State,” he said.
VPA, State machinery to facilitate project
Jasmeet Singh Bindra, Chairperson, Visakhapatnam Port Authority, said VPA, which holds a 50% share in NSHIP-AP, would support the development process.
“VPA will facilitate coordination with the Government of India and other Central Government agencies and extend the necessary support for timely development of the cluster,” he said.
Kona Sasidhar, IAS, Secretary, Infrastructure & Investment, Government of Andhra Pradesh, said MDL’s selection as Anchor Shipyard represented an important milestone.
“The selection of MDL as the Anchor Shipyard is an important milestone in Andhra Pradesh’s maritime development. This project has the potential to create a major shipbuilding and ancillary ecosystem at Dugarajapatnam. Andhra Pradesh Maritime Board will extend the necessary facilitation for land, infrastructure and statutory clearances to enable timely development of the project,” he said.
The project is thus being positioned at the intersection of defence-industry expertise, commercial shipbuilding, port infrastructure and private-sector ancillary opportunities, with Dugarajapatnam emerging as a proposed node in India’s long-term maritime growth strategy.
