India’s proposed ₹30,000-crore greenfield shipbuilding cluster at Dugarajapatnam in Andhra Pradesh has received in-principle approval under the National Shipbuilding Mission. The project is expected to strengthen India’s shipbuilding and ship repair capabilities while positioning Andhra Pradesh as a major maritime and industrial hub on the country’s eastern coast.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal highlighted the project at the 31st CII Partnership Summit in Visakhapatnam on November 12, 2026. The proposed cluster is designed to achieve an annual shipbuilding capacity of 1.2 million gross tonnes (GT).
A special purpose vehicle (SPV) involving the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority has been established to coordinate the project’s development and attract investors.
3,488 Acres Identified for Shipbuilding Hub
The proposed cluster will be developed across approximately 3,488 acres at Dugarajapatnam in Tirupati district, making it the largest among the five greenfield shipbuilding clusters identified under the national initiative.
The site has around 2.1 kilometres of waterfront, with plans to achieve water depths of 13 to 15 metres after dredging. It is strategically located along the Visakhapatnam-Chennai Industrial Corridor.
The proposed infrastructure will include shipbuilding and ship repair yards, dry docks, ship lifts, outfitting berths and heavy engineering facilities. It is expected to support the construction and maintenance of commercial vessels, including tankers, bulk carriers, container ships and LNG carriers.
Mazagon Dock Identified as Anchor Shipyard
Mazagon Dock Shipbuilders Limited (MDL), a Navratna defence public sector undertaking, has been identified as the anchor shipyard for the proposed cluster.
MDL and the project SPV, National Shipbuilding and Heavy Industries Park Andhra Pradesh Limited (NSHIP-AP), signed a memorandum of understanding in September 2026 to develop a modern greenfield shipyard at Dugarajapatnam.
The shipyard is expected to attract an investment of approximately ₹15,000 crore over five to seven years, subject to regulatory approvals and clearances. It is planned to have a design capacity of 1.2 million gross tonnes annually and could generate around 45,000 direct and indirect employment opportunities.
The proposed facility will cater to the construction of a wide range of commercial vessels, including tankers, bulk carriers, container ships and LNG carriers.
Andhra Pradesh Targets Maritime Industry Growth
Sonowal said Andhra Pradesh’s 1,053-kilometre coastline, access to international shipping routes and proximity to major Asian markets give it significant potential to emerge as India’s eastern maritime gateway.
The state is also developing four greenfield ports at Mulapeta, Machilipatnam, Ramayapatnam and Kakinada SEZ to strengthen cargo-handling capacity and support industrial growth.
The minister invited international shipbuilders, technology companies, equipment manufacturers and maritime investors to participate in the state’s port and shipbuilding development plans.
Part of India’s Wider Shipbuilding Ambition
The Dugarajapatnam project is part of India’s broader strategy to become one of the world’s leading shipbuilding nations. The National Shipbuilding Mission aims to strengthen domestic manufacturing capacity, develop common maritime infrastructure and attract private and international investment.
The government has also announced ₹70,000 crore in financing support for shipbuilding and related maritime activities, alongside other initiatives to promote indigenous manufacturing and coastal cargo movement.
With its proposed shipbuilding capacity, large industrial land allocation and planned maritime infrastructure, Dugarajapatnam is expected to play a significant role in expanding India’s shipbuilding ecosystem and generating employment across Andhra Pradesh.
