Dugarajapatnam gets in-principle nod for ₹30,000-crore shipbuilding cluster in Andhra Pradesh: Check its plans, capacity

Andhra Pradesh is set to get a major boost to its maritime industry, with the Centre granting in-principle approval to a proposed ₹30,000-crore shipbuilding cluster at Dugarajapatnam in Tirupati district.

Andhra Pradesh gets ₹30,000-crore shipbuilding cluster at Dugarajapatnam

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal announced the development on 12 November at the 31st Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam. The project has been approved in principle under the National Shipbuilding Mission and aims to create a major shipbuilding and repair centre on India's east coast.

The proposed cluster is expected to have an annual shipbuilding capacity of 1.2 million gross tonnes (GT). It will include a large shipyard, ship repair facilities and units that manufacture heavy engineering equipment.

The project is part of the Centre's efforts to increase India's shipbuilding capacity and attract investment from domestic and international companies. Sonowal also invited global shipbuilders, technology companies and equipment manufacturers to explore investment opportunities in Andhra Pradesh.

According to the Ministry of Ports, Shipping and Waterways, the state has a coastline of around 1,053 km and is well placed to develop its ports, shipbuilding and maritime industries.

The site has around 2.1 km of waterfront and is located along the Visakhapatnam-Chennai Industrial Corridor. The planned water depth is between 13 and 15 metres after dredging, which will help accommodate large vessels.

The project will have an anchor shipyard, along with ship repair yards and heavy engineering facilities. Its planned infrastructure includes dry docks, ship lifts and outfitting berths. These facilities will allow companies to build, repair and prepare ships for operations.

The cluster-wide target is to reach an annual capacity of 1.2 million GT. Gross tonnage is a measure based on the internal volume of a ship, rather than its weight.

Under the Shipbuilding Development Scheme, at least one anchor shipyard in the cluster must reach an annual capacity of 500,000 GT within 10 years of commissioning.

The large land area is also expected to make space for companies that supply equipment, components and other services to shipyards. This could help create an industrial network around the main shipbuilding facility.

The company, called National Shipbuilding and Heavy Industries Park Andhra Pradesh Limited (NSHIP-AP), will handle investor discussions, land-related checks and talks with companies interested in setting up the main shipyard.

It will also be responsible for developing common infrastructure, including dredging, waterfront facilities, internal transport systems and utilities. It will help allot land to shipyards and other companies that want to set up units within the cluster.

The Centre and the Andhra Pradesh government are expected to work together to develop facilities that can be used by multiple shipbuilders and suppliers.

Dugarajapatnam is one of five greenfield shipbuilding clusters that have received in-principle approval. The other four are:

- Thoothukudi, Tamil Nadu

- Kucchadi, Gujarat

- Dighi, Maharashtra

- Kendrapara, Odisha

These projects are part of the Centre's wider plan to develop shipbuilding and ship repair facilities across the country.

According to the Directorate General of Maritime Administration (DGMA), the revised techno-economic feasibility report for Dugarajapatnam is under review. Land acquisition is also progressing, while discussions with companies interested in becoming the anchor shipyard operator are still open.

This means that no anchor shipyard investor has been officially confirmed yet.

The ₹30,000-crore figure is the proposed investment for the entire cluster. The government has not announced a detailed funding plan, construction start date or expected completion date.

The project will therefore need to move through further planning, investor selection and infrastructure development before it becomes operational.

Four greenfield port projects at Mulapeta, Machilipatnam, Ramayapatnam and Kakinada are also under construction. The Centre believes these developments can improve cargo movement, support industries and create more opportunities for trade.

At the CII Partnership Summit, Sonowal said Andhra Pradesh had the potential to become an important maritime gateway for India's eastern and central regions.

If the Dugarajapatnam project moves ahead as planned, it could help Andhra Pradesh become an important centre for shipbuilding and ship repair. It could also attract companies involved in marine engineering, equipment manufacturing and logistics.

For now, the in-principle approval is an important step, but the project still needs investors, land development and other clearances before work can begin.