Mazagon Dock to invest Rs 15,000 crore in Andhra’s Dugarajapatnam shipyard; 45,000 jobs expected

According to fresh market updates, Mazagon Dock Shipbuilders Ltd (MDL) has signed an MoU with the National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) to develop a greenfield shipyard at Dugarajapatnam in Andhra Pradesh, with an investment of around Rs 15,000 crore over the next five to seven years.

The project, subject to the required approvals and clearances, is anticipated to generate direct and indirect employment for around 45,000 people in the state.

The MoU was signed in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu by MDL Chairman and Managing Director Capt Jagmohan (Retd.) and NSHIP-AP Managing Director Praveen Adhithya C V.

MDL, a Navratna Defence PSU under the Ministry of Defence, will develop the shipyard as the anchor shipyard for the Dugarajapatnam shipbuilding cluster.

The proposed facility will have a design capacity of 1.2 million Gross Tonnage per annum, with scope for expansion based on market requirements.

The shipyard will build commercial vessels, including tankers, bulk carriers, container ships, LNG carriers and other specialised large vessels.

The project is part of Andhra Pradesh's plan to develop a greenfield Shipbuilding-cum-Port Cluster at Dugarajapatnam.

According to the state's Techno-Economic Feasibility Report, the shipbuilding and ship repair yard is estimated to cost around Rs 29,254 crore, while the proposed port is estimated at ₹9,513 crore. The port is proposed to be developed by the Centre. Naidu's shipbuilding propel

Naidu stated Andhra Pradesh was committed to being at the forefront of India's ambition to become 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,” Naidu stated.

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

The Chief Minister additionally stated the project would create opportunities in shipbuilding, marine engineering, manufacturing, logistics and other allied sectors.

Capt Jagmohan stated Dugarajapatnam had the scale and maritime potential to backing the development of a globally competitive shipyard.

He stated MDL aimed to create a modern facility that would serve both domestic and international markets.

The 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.

Visakhapatnam Port Authority Chairperson Jasmeet Singh Bindra stated the VPA, which holds a 50% stake in NSHIP-AP, would backing the development of the cluster and coordinate with the Centre and other central government agencies.

Kona Sasidhar, Secretary, Infrastructure & Investment, Andhra Pradesh government, described MDL's selection as anchor shipyard as an important milestone in the state's maritime development and stated the project could create a major shipbuilding and ancillary ecosystem at Dugarajapatnam.