Mazagon Dock Shipbuilders Limited (MDL), a key defence shipbuilding company, has expressed interest in setting up a major manufacturing facility at the proposed Dugarajapatnam shipbuilding cluster in Andhra Pradesh. Representatives from the Navratna company recently discussed the proposal with Chief Minister N Chandrababu Naidu, with the project potentially involving an investment of around ₹26,000 crore.
MDL Proposes Dugarajapatnam Shipyard
MDL is considering developing the proposed shipbuilding cluster at Dugarajapatnam, with the Andhra Pradesh government exploring an agreement with the company for construction of the shipyard. The proposed facility is expected to strengthen the state’s position in shipbuilding and maritime manufacturing.
₹26,000 Crore Investment Plan
According to officials, MDL could invest approximately ₹26,000 crore in the development of the shipbuilding cluster. The company has also proposed a 30% capital investment subsidy, while the state government is currently examining the level of subsidy that could be approved.
Land and Infrastructure Plans
The Andhra Pradesh government plans to provide land for the project, while the Centre is expected to fund the common infrastructure required for the development of the Dugarajapatnam port.
The AP Maritime Board has begun steps to acquire around 2,200 acres for the port and shipyard. Of this, around 1,000 acres are planned for the shipyard, while another 1,350 acres have been earmarked for ancillary industries.
Port and Shipbuilding Cluster
The AP Maritime Board and the Visakhapatnam Port Authority will oversee the development of the Dugarajapatnam port and the proposed shipbuilding and ship repair cluster.
The integrated project is expected to create an ecosystem around shipbuilding, ship repair and supporting industries, potentially attracting additional maritime businesses to the region.
DPR Preparation Underway
The state government has issued an Expression of Interest (EoI) to appoint a technical consultant for preparing the Detailed Project Report for the Dugarajapatnam port and shipbuilding cluster.
Proposals are scheduled to be evaluated on August 24, after which the selected consultant will prepare infrastructure cost estimates and a master plan covering the port, shipyard layout and wider shipbuilding cluster.
