AP government approves Rs 8,000 crore shipbuilding facility for Goa Shipyard at Machilipatnam Port

The Andhra Pradesh government has approved a tailor-made incentive package for Goa Shipyard Limited (GSL) to establish an Rs 8,000-crore shipbuilding and ship-repair facility at Machilipatnam Port, a project expected to create about 8,000 jobs and anchor a wider maritime manufacturing ecosystem.

The project, approved by the State Investment Promotion Board (SIPB), envisages 3,000 direct and 5,000 indirect employment opportunities. The government has directed the Andhra Pradesh Maritime Board (APMB) to facilitate land allotment, infrastructure and regulatory clearances and develop an ancillary cluster around the shipyard.

Under the package, up to 400 acres will be made available on lease for 30 years, extendable under applicable guidelines. Lease rental will be fixed at 2% of the fair market value with a 5% annual escalation. The package also includes 19 acres of waterfront land with a 50% premium and a five-year moratorium.

The government will facilitate road connectivity, power and industrial water supply and undertake capital and maintenance dredging of the common approach channel to a minimum depth of about 10 metres, subject to applicable rules. The government said the project is intended to strengthen Andhra Pradesh’s position in shipbuilding and promote ancillary industries around Machilipatnam Port.