Andhra Pradesh is set to receive a major maritime investment with Navratna Defence PSU Mazagon Dock Shipbuilders Limited (MDL) planning a greenfield shipyard at Dugarajapatnam. The project is part of the state’s larger plan to build a strong shipbuilding and maritime manufacturing ecosystem along its coastline.

MDL has signed a Memorandum of Understanding (MoU) with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) for the proposed shipyard. The company plans to invest around ₹15,000 crore over the next five to seven years. The investment remains subject to statutory approvals and clearances. The project is expected to create around 45,000 direct and indirect jobs.

MDL Chairman and Managing Director Capt. Jagmohan (Retd.) and NSHIP-AP Managing Director Praveen Adhithya C.V. exchanged the MoU in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu.

Welcoming MDL to the state, Naidu said the project would strengthen Andhra Pradesh’s efforts to become an important destination for shipbuilding and maritime manufacturing.

“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,” Naidu said.

The Dugarajapatnam project will form the anchor for a much larger greenfield shipbuilding-cum-port cluster. The state expects the MDL shipyard to attract supporting industries in marine engineering, manufacturing, logistics, ship repair and other related sectors.

The proposed shipyard will have a design capacity of 1.2 million gross tonnes per year. The facility can be expanded further based on market demand. It will focus on commercial vessels such as tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels.

The larger Dugarajapatnam development will involve investments beyond MDL’s initial ₹15,000-crore commitment. As per the Techno-Economic Feasibility Report, the proposed shipbuilding and ship-repair yard is estimated to require around ₹29,254 crore. A separate port component, estimated at ₹9,513 crore, is proposed to be developed by the Centre.

National Ship and Heavy Industries Park (NSHIP-AP) operates as a Special Purpose Vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority. MDL has been selected to build a shipyard cluster under the Centre’s Shipbuilding Development Scheme.

Naidu said the Andhra Pradesh government would provide the required support to MDL for developing Dugarajapatnam into a globally competitive shipbuilding hub. The state also aims to use the project to build a wider maritime industrial ecosystem along its coastline.