Amaravati, Sept 2026 : Mazagon Dock Shipbuilders Limited (MDL), a Navratna Defence Public Sector Undertaking under the Ministry of Defence, will develop a modern greenfield shipyard at Dugarajapatnam in Andhra Pradesh, with an investment of around Rs 15,000 crore over the next five to seven years.
An MoU for the project was signed on Friday between MDL Chairman and Managing Director Captain Jagmohan (retd) and National Shipbuilding and Heavy Industries Park-Andhra Pradesh (NSHIP-AP) Managing Director Praveen Adhithya. Andhra Pradesh Chief Minister N. Chandrababu Naidu was present at the signing ceremony, according to an official release.
The Andhra Pradesh government is planning a greenfield shipbuilding-cum-port cluster at Dugarajapatnam. According to the Techno-Economic Feasibility Report, the estimated cost of the shipbuilding and ship repair yard is approximately Rs 29,254 crore, while the proposed port is estimated to cost Rs 9,513 crore. The port is proposed to be developed by the Centre.
Under the MoU, MDL plans to invest approximately Rs 15,000 crore in the shipyard over five to seven years, subject to obtaining the required statutory approvals and clearances. The project is expected to generate around 45,000 direct and indirect employment opportunities in Andhra Pradesh.
The proposed facility will have an initial design capacity of 1.2 million Gross Tonnage per annum, with scope for expansion depending on market requirements. The shipyard will be capable of constructing a wide range of commercial vessels, including tankers, bulk carriers, container ships, LNG carriers and other specialised large vessels.
The Dugarajapatnam shipbuilding cluster is being developed under the Centre's Shipbuilding Development Scheme (SbDS). NSHIP-AP, a Special Purpose Vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, has identified MDL as the anchor shipyard for the proposed cluster.
Speaking on the occasion, Chief Minister Naidu said Andhra Pradesh was committed to contributing to India's ambition of becoming one of the world's top five shipbuilding nations by 2047.
“India has set an ambitious vision of becoming one of the world’s top five shipbuilding nations by 2047. Andhra Pradesh is committed to being at the forefront of this journey by leveraging its long coastline, strategic location and industrial ecosystem,” he said.
Naidu said the Dugarajapatnam shipbuilding cluster, with MDL as its anchor shipyard, would help position Andhra Pradesh as a major hub for shipbuilding while attracting investments and ancillary industries.
He said the project would also create employment opportunities across shipbuilding, marine engineering, manufacturing, logistics and other allied sectors.
MDL CMD Captain Jagmohan (retd) said Dugarajapatnam had the scale and maritime potential required to establish a globally competitive shipyard. He said MDL aimed to develop a modern facility capable of catering to both domestic and international markets.
Visakhapatnam Port Authority Chairperson Jasmeet Singh Bindra said the VPA, as a 50 per cent shareholder in NSHIP-AP, was committed to supporting the development of the shipbuilding cluster. He said the authority would facilitate coordination with the Central government and other Central agencies.
Andhra Pradesh Secretary, Infrastructure and Investment, Kona Sasidhar, described MDL's selection as the anchor shipyard as an important milestone in the state's maritime development. He said the project could lead to the development of a major shipbuilding and ancillary ecosystem at Dugarajapatnam.
The Andhra Pradesh Maritime Board will facilitate the required land, infrastructure and statutory clearances to support the timely development of the project.
