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.
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 proposed project will cover 3,488 acres, making it the largest of the five greenfield shipbuilding clusters shortlisted under the national programme.
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 Andhra Pradesh Maritime Board (APMB) and Visakhapatnam Port Authority (VPA) have formed a 50:50 joint venture to take the project forward.
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.
Although the project has received in-principle approval, several steps remain before construction can begin.
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.
The shipbuilding cluster is part of Andhra Pradesh's larger plan to expand its port and shipping infrastructure.
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.
Trisha Bhattacharya is a Senior Content Producer at Livemint, with over two years of experience covering entertainment news from India and beyond. She spends her days tracking what’s trending, breaking down pop culture moments, and turning fast-moving entertainment stories into sharp, engaging reads that actually make people want to click — and stay. <br> She holds a Master’s degree in English Literature from Lucknow University, a background that shapes her love for layered narratives, strong voices, and stories that linger long after they’re told. Before joining Livemint, Trisha worked with India Today as an entertainment journalist and film critic. There, she reviewed films, covered industry news, and built a strong foundation in storytelling and cultural analysis. <br> Trisha enjoys working at the intersection of media, culture, and audience interest, always looking for fresh angles and formats. Films, shows, and music are not just her beat but her biggest passion — something that naturally reflects in her writing. Whether it’s cinema, streaming shows, music, or internet trends, she approaches every story with curiosity and intent. <br> Outside the job description, she’s unapologetically passionate about films, shows, and music — sometimes a little too passionate, if you ask her. That enthusiasm often spills into her work, adding personality, urgency, and a touch of chaos that keeps her writing alive. For Trisha, entertainment isn’t just a beat — it’s a language she speaks fluently.
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