The Centre has granted in-principle approval to a proposed ₹30,000-crore shipbuilding cluster at Dugarajapatnam in Andhra Pradesh’s Tirupati district. Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal outlined the project on 12 November 2026 at the Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam. The cluster, approved in principle under the National Shipbuilding Mission, is designed to add annual shipbuilding capacity of 1.2 million gross tonnes (GT) on India’s east coast.
What will the Dugarajapatnam shipbuilding cluster include?
The Directorate General of Maritime Administration lists 3,488 acres for the project, the largest land allocation among five shortlisted greenfield shipbuilding clusters. The site lies along the Visakhapatnam–Chennai Industrial Corridor and has about 2.1 km of waterfront. Plans envisage water depths of 13 to 15 metres after dredging.
The project envisages an anchor shipyard alongside ship repair yards and heavy engineering facilities. The proposed marine infrastructure includes dry docks, ship lifts and outfitting berths. Under the Shipbuilding Development Scheme, at least one anchor yard must reach annual capacity of 500,000 GT within 10 years of commissioning. The cluster-wide target of 1.2 million GT a year measures the size of ships the yards could build, using gross tonnage, which is based on enclosed vessel volume.
Who will develop the Andhra Pradesh shipbuilding cluster?
The Andhra Pradesh Maritime Board (APMB) and Visakhapatnam Port Authority (VPA) have formed a 50:50 special purpose vehicle, National Shipbuilding and Heavy Industries Park Andhra Pradesh Limited (NSHIP-AP). The company will handle investor engagement, land due diligence and discussions with prospective anchor shipyards. Its remit also covers shared infrastructure such as dredging, waterfront facilities, internal logistics and utilities, as well as land allotment for yards and ancillary units.
The national scheme uses a Centre–state partnership to develop common infrastructure that can serve more than one shipyard or supplier. Dugarajapatnam is one of five shortlisted sites with in-principle approval, alongside Thoothukudi in Tamil Nadu, Kucchadi in Gujarat, Dighi in Maharashtra and Kendrapara in Odisha.
What happens next at Dugarajapatnam?
The revised techno-economic feasibility report is under review, land acquisition is progressing and discussions with prospective anchor shipyards remain open, according to the Directorate General of Maritime Administration. The ₹30,000 crore is the envisaged investment for the cluster. The ministry’s summit announcement gave no funding breakdown, construction start date or commissioning schedule.
FAQs
Where is the Dugarajapatnam shipbuilding cluster located?
The proposed cluster is in Tirupati district, on the Andhra Pradesh coast within the Visakhapatnam–Chennai Industrial Corridor.
Has an anchor shipyard been selected?
The official project profile lists anchor shipyard engagement as open. NSHIP-AP is the point of contact for prospective investors and shipyard operators.
How large is the proposed shipbuilding cluster?
The project profile lists 3,488 acres and about 2.1 km of waterfront. The ministry has set a cluster-wide capacity target of 1.2 million GT a year.
Join our WhatsApp channel for more updates:
Subscribe to our YouTube channel for more updates:
