HYDERABAD, Sept 18: Mazagon Dock Shipbuilders Ltd (MDL) on Friday signed an MoU with the National Shipbuilding and Heavy Industries Park-Andhra Pradesh (NSHIP-AP) to develop a greenfield shipyard at Dugarajapatnam in Tirupati district, with an investment of around ₹15,000 crore over the next five to seven years.
MDL, a Navratna defence PSU under the Ministry of Defence, will serve as the anchor shipyard for the proposed Dugarajapatnam shipbuilding-cum-port cluster. The investment will be subject to the required approvals and statutory clearances.
The proposed facility will have a design capacity of 1.2 million gross tonnes (GT) annually and will manufacture commercial vessels, including tankers, bulk carriers, container ships and LNG carriers, besides other specialised vessels. The project is expected to generate around 45,000 direct and indirect employment opportunities.
The MoU was signed in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu. NSHIP-AP is a special purpose vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority.
The Andhra Pradesh government is planning an integrated shipbuilding-cum-port cluster at Dugarajapatnam. According to the techno-economic feasibility report, the shipbuilding and ship-repair yard is estimated to cost around ₹29,254 crore, while the port component is estimated at ₹9,513 crore. The port is proposed to be developed by the Centre.
The cluster is being developed under the Centre’s Shipbuilding Development Scheme and is aligned with the Maritime Amrit Kaal Vision 2047, which seeks to strengthen India’s position in the global shipbuilding sector.Naidu said Andhra Pradesh would leverage its long coastline, strategic location and industrial ecosystem to contribute to India’s shipbuilding ambitions.
“Andhra Pradesh is committed to being at the forefront of this journey by leveraging its long coastline, strategic location and industrial ecosystem,” he said.
The Chief Minister also said the Dugarajapatnam cluster would help develop the state as a major shipbuilding hub and attract ancillary industries, creating opportunities in shipbuilding, marine engineering, manufacturing and logistics.
MDL Chairman and Managing Director Captain Jagmohan (retd) said Dugarajapatnam had the scale and maritime potential required for a globally competitive shipyard.
The proposed cluster covers around 3,488 acres with approximately 2.1 km of waterfront. The facility will have scope for capacity expansion based on future market requirements.
The development comes after MDL had signed an MoU with Tamil Nadu in September 2025 to explore a greenfield shipyard at Thoothukudi. Tamil Nadu subsequently selected HD Korea Shipbuilding & Offshore Engineering as the anchor for that cluster.
The Centre’s framework envisages one greenfield shipbuilding cluster per state, with Andhra Pradesh and Tamil Nadu among the states that have received in-principle approval.
