Mazagon Dock to invest Rs 15,000 crore in greenfield shipyard in Andhra Pradesh

According to fresh market updates, Mazagon Dock Shipbuilders Ltd (MDL) will invest around Rs 15,000 crore over the next five to seven years to develop a greenfield shipyard at Dugarajapatnam in Andhra Pradesh, with the project anticipated to generate around 45,000 direct and indirect jobs, the Andhra Pradesh government stated on September 18.

The Navratna defence PSU under the Ministry of Defence has signed a memorandum of understanding (MoU) with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) to develop the shipyard. The investment will be subject to the required approvals and clearances.

The proposed shipyard will have a design capacity of 1.2 million gross tonnes (GT) a year, with scope for further expansion based on market requirements. It will build commercial vessels, including tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels.

“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,” Andhra Pradesh Chief Minister N Chandrababu Naidu stated.

Naidu stated the Dugarajapatnam shipbuilding cluster, with MDL as the anchor shipyard, would help position Andhra Pradesh as a major shipbuilding hub and attract investments and ancillary industries to the state.

The Andhra Pradesh government is planning a shipbuilding-cum-port cluster at Dugarajapatnam. Its Techno-Economic Feasibility Report estimates the shipbuilding and ship-repair yard to cost around 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 Central government.

The shipbuilding cluster is being developed under the Government of India’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.

MDL Chairman and Managing Director Capt. Jagmohan (Retd.) stated Dugarajapatnam has the scale and maritime potential to develop a globally competitive shipyard serving both domestic and international markets.

The Andhra Pradesh government stated the project will create employment opportunities across shipbuilding, marine engineering, manufacturing, logistics and other allied sectors.

The Andhra Pradesh Maritime Board will facilitate land, infrastructure and statutory clearances required for the timely development of the project.