MDL SIGNS MOU WITH NSHIP-AP FOR GREENFIELD SHIPYARD AT DUGARAJAPATNAM
The Government of Andhra Pradesh envisages development of a greenfield Shipbuilding-cum-Port Cluster at Dugarajapatnam. The Techno-Economic Feasibility Report (TEFR) estimates the Shipbuilding and Ship Repair Yard at approximately ₹29,254 crore and the Port at ₹9,513 crore, with the Port proposed to be developed by the Government of India.
The shipbuilding cluster is being developed under the Government of India’s Shipbuilding Development Scheme (SbDS). To develop the cluster, National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP), a Special Purpose Vehicle (SPV), was formed jointly by the Andhra Pradesh Maritime Board (APMB) and Visakhapatnam Port Authority (VPA). NSHIP-AP has identified Mazagon Dock Shipbuilders Limited (MDL), one of India’s premier shipbuilders and a Navratna Defence Public Sector Undertaking, as the Anchor Shipyard for the proposed cluster.
MDL and NSHIP-AP signed a Memorandum of Understanding (MoU) on 18 September 2026 in the presence of the Hon’ble Chief Minister of Andhra Pradesh, Shri N. Chandrababu Naidu. The MoU was signed by Capt. Jagmohan (Retd.), Chairman & Managing Director, MDL, and Shri Praveen Adhithya C. V., IAS, Managing Director, NSHIP-AP.
Under the MOU, MDL envisages development of a modern greenfield shipyard at Dugarajapatnam with adequate land and waterfront. The project is anticipated to attract an investment of about 15,000 crore over the next five to seven years, subject to requisite approvals and clearances, and generate direct and indirect employment for approximately 45,000 people in Andhra Pradesh. The shipyard will have a design capacity of 1.2 million Gross Tonnage per annum, with provision for further expansion based on market requirements. The proposed shipyard will cater to a broad range of commercial vessels, including tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels. The project is envisaged as a major step in MDL’s diversification into large-scale commercial shipbuilding and is aligned with the Government of India’s Maritime Amrit Kaal Vision 2047 and the Shipbuilding Development Scheme.
Speaking on the occasion, Hon’ble Chief Minister of Andhra Pradesh, Shri N. Chandrababu Naidu, said: “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. The development of the shipbuilding cluster at Dugarajapatnam, with MDL as the Anchor Shipyard, will position Andhra Pradesh as a major shipbuilding hub and attract a strong ecosystem of ancillary industries and investments to the State.”
Capt. Jagmohan (Retd.), Chairman & Managing Director, MDL, said: “Dugarajapatnam offers the scale and maritime potential required for developing a globally competitive shipyard. With the support of the Government of Andhra Pradesh and NSHIP-AP, MDL intends to create a modern shipbuilding facility capable of serving both domestic and international markets. The project will also catalyse the development of a strong ancillary and marine engineering ecosystem and contribute significantly to employment generation in the State.”
Shri Jasmeet Singh Bindra, Chairperson, Visakhapatnam Port Authority, said: “As a 50% shareholder in NSHIP-AP, Visakhapatnam Port Authority is committed to the development of the shipbuilding cluster at Dugarajapatnam. VPA will facilitate coordination with the Government of India and other Central Government agencies and extend the necessary support for timely development of the cluster.”
Shri Kona Sasidhar, IAS, Secretary, Infrastructure & Investment, Government of Andhra Pradesh said: “The selection of MDL as the Anchor Shipyard is an important milestone in Andhra Pradesh’s maritime development. This project has the potential to create a major shipbuilding and ancillary ecosystem at Dugarajapatnam. Andhra Pradesh Maritime Board will extend the necessary facilitation for land, infrastructure and statutory clearances to enable timely development of the project.”