NSHIPOL gets in-principle nod for Rs 24,700 crore Odisha shipbuilding cluster

Odisha’s centuries-old maritime legacy is set to get a new industrial dimension, with the state’s first major shipbuilding cluster proposed along the Mahanadi riverbank in Kendrapada receiving the Centre’s nod.

The National Shipbuilding and Heavy Industries Park Odisha Ltd (NSHIPOL) has got in-principle approval under the Shipbuilding Development Scheme (SbDS) of the Ministry of Ports, Shipping and Waterways for the proposed Rs 24,700 crore project, officials said on Monday.

The approval marks the first major step to turn Odisha’s long association with seafaring and maritime trade into a modern shipbuilding and heavy industries ecosystem. NSHIPOL had submitted its application on July 30. The proposed cluster, to come up along the northern bank of the Mahanadi, opposite the Iffco plant in Paradip, is expected to create an integrated ecosystem for shipbuilding, ship repair and associated heavy industries.

The project will be developed through a special purpose vehicle involving the Odisha Maritime Board (OMB) and Paradip Port Authority (PPA). Officials said the competent authority granted in-principle approval after examining the proposal, following the recommendations of the sixth meeting, on August 10, of the Inter-Ministerial Group for Shipbuilding (IMGB) of the National Shipbuilding Mission.

The project includes plans for one or more large shipyards having a combined building capacity of around 1.2 million gross tonnes a year. The original plan envisaged a dedicated waterfront of 2-2.5 km and an area of 2,000-2,500 acres. The cluster is strategically positioned close to Paradip Port and Odisha’s mineral and industrial hinterland, giving it access to steel, coal and other raw materials as well as an established maritime logistics network. The proposed ecosystem is likely to include ancillary industries such as engine manufacturing, steel fabrication and marine equipment suppliers, besides common facilities, training centres and research & development infrastructure.

An official said NSHIPOL will now prepare a project report covering the shipyard’s infrastructure requirements, proposed vessel specifications, capital expenditure, dredging and breakwater requirements and the financial model. It will also have to secure statutory approval, including environmental clearance and Coastal Regulation Zone permission, before moving to final approval under the scheme, subsequently submitting its proposal along with the detailed project report, requisite statutory clearances and investment commitments within the prescribed timeline.

P L Haranadh, Chairperson of the Paradip Port Authority, termed the in-principle approval an important milestone in Odisha’s maritime development journey. He said the proposed shipbuilding and heavy industries park has the potential to strengthen shipbuilding capabilities, attract investment, create employment opportunities and promote the development of ancillary industries in the region.

The Centre’s shipbuilding scheme envisages state-level clusters with shared infrastructure to improve competitiveness, attract private investment and create jobs. The state’s Economic Survey had identified the national mega shipbuilding cluster in Kendrapara, while NITI Aayog’s economic plan for the Bhubaneswar-Cuttack-Puri-Paradip region proposed developing the Mahanadi riverine location into a leading shipbuilding and ship-repair hub for large and short-sea vessels. The NITI Aayog plan suggested the proposed hub could eventually support a design and innovation centre for green-vessel technology, a skill-development academy and green shipbuilding practices, apart from ancillary manufacturing units for engines, navigation systems and other marine equipment.

If implemented as envisaged, the Kendrapara cluster could mark a shift in Odisha’s maritime economy, from being primarily a bulk cargo-handling and mineral-export hub centred around Paradip to developing capabilities across ship construction, ship repair, marine engineering and ancillary manufacturing.