New Delhi: Mazagon Dock Shipbuilders Limited (MDL), a Navratna Defence PSU, has signed a Memorandum of Understanding (MoU) with the National Shipbuilding and Heavy Industries Park–AP (NSHIP-AP) to develop a modern greenfield shipyard at Dugarajapatnam in Andhra Pradesh.
The MoU was signed in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu by Capt. Jagmohan (Retd.), CMD, MDL, and Praveen Adhithya C.V., IAS, Managing Director, NSHIP-AP.
Under the proposed project, MDL will serve as the Anchor Shipyard for the Dugarajapatnam Shipbuilding-cum-Port Cluster. The facility is envisaged with an investment of around ₹15,000 crore and a design capacity of 1.2 million Gross Tonnage (GT) per annum.
MDL to Invest ₹15,000 Crore in Dugarajapatnam Shipyard
MDL plans to invest approximately ₹15,000 crore over the next five to seven years, subject to the required approvals and statutory clearances.
The proposed shipyard is expected to create around 45,000 direct and indirect employment opportunities in Andhra Pradesh.
The project is also expected to generate additional opportunities across:
- Marine engineering
- Manufacturing
- Logistics
- Ship repair and allied services
- Ancillary industries
- Other maritime-related sectors
The facility is planned to cater to both domestic and international markets.
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Shipyard to Have 1.2 Million GT Annual Capacity
The proposed Dugarajapatnam shipyard will have a design capacity of 1.2 million GT per year, with scope for expansion based on future market requirements.
The facility is expected to build a range of commercial and specialised vessels, including:
- Tankers
- Bulk carriers
- Container ships
- LNG carriers
- Other large specialised vessels
The large-scale facility is intended to strengthen India’s commercial shipbuilding capabilities and support the development of a wider maritime manufacturing ecosystem.
Dugarajapatnam Shipbuilding-cum-Port Cluster
The Andhra Pradesh Government is planning an integrated shipbuilding-cum-port cluster at Dugarajapatnam.
According to the Techno-Economic Feasibility Report (TEFR):
- Shipbuilding and ship-repair yard: Approximately ₹29,254 crore
- Port development: Approximately ₹9,513 crore
The port is proposed to be developed by the Government of India.
The Andhra Pradesh Maritime Board will facilitate land, infrastructure and statutory clearances required for the timely development of the project.
Project to Support India’s Shipbuilding Ambitions
The Dugarajapatnam shipbuilding cluster is being developed under the Government of India’s Shipbuilding Development Scheme (SbDS).
NSHIP-AP, a Special Purpose Vehicle (SPV) jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, has identified MDL as the anchor shipyard for the project.
The project is expected to contribute to India’s long-term objective of strengthening its position in the global shipbuilding sector and becoming one of the world’s leading shipbuilding nations by 2047.
Chandrababu Naidu Highlights Maritime Potential of Andhra Pradesh
Chief Minister N. Chandrababu Naidu said Andhra Pradesh aims to play a leading role in India’s shipbuilding ambitions by leveraging its long coastline, strategic location and industrial ecosystem.
He said the Dugarajapatnam cluster, with MDL as the anchor shipyard, would help develop Andhra Pradesh as a major shipbuilding hub while attracting investments and ancillary industries.
The Chief Minister also highlighted the potential for employment and business opportunities in shipbuilding, marine engineering, manufacturing, logistics and other allied sectors.
MDL, VPA and State Officials Highlight Project Potential
Capt. Jagmohan (Retd.), CMD, MDL, said Dugarajapatnam has the scale and maritime potential required to develop a globally competitive shipyard. He said MDL aims to establish a modern facility capable of serving both domestic and international markets.
Jasmeet Singh Bindra, Chairperson, Visakhapatnam Port Authority, said VPA, as a 50% shareholder in NSHIP-AP, is committed to supporting the development of the shipbuilding cluster and coordination with the Government of India and other central government agencies.
Kona Sasidhar, Secretary, Infrastructure and Investment, Government of Andhra Pradesh, described the selection of MDL as the anchor shipyard as an important milestone for the state’s maritime development. He said the project has the potential to create a major shipbuilding and ancillary ecosystem at Dugarajapatnam.
Senior Officials Attend MoU Signing
The MoU signing ceremony was attended by several senior officials and representatives, including:
- BC Janardhan Reddy, Minister, Andhra Pradesh
- Damacharla Satya, Chairman, Andhra Pradesh Maritime Board
- Capt. Jagmohan (Retd.), CMD, MDL
- Jasmeet Singh Bindra, Chairperson, Visakhapatnam Port Authority
- Senior officials from the Government of Andhra Pradesh, MDL and other organisations
The agreement between MDL and NSHIP-AP marks a major step towards developing the proposed greenfield shipbuilding cluster at Dugarajapatnam.
About Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders Limited (MDL) is a Navratna Defence PSU under the Ministry of Defence. The company is engaged in the construction of warships, submarines and other vessels and has capabilities spanning shipbuilding and ship repair. With the proposed Dugarajapatnam project, MDL is also set to expand its role in large-scale commercial shipbuilding.
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