Mazagon Dock Shipbuilders Ltd (MDL) will invest around ₹15,000 crore to develop a Greenfield shipyard at Dugarajapatnam in Andhra Pradesh, with the project expected to generate around 45,000 direct and indirect jobs.

The Navratna defence public sector undertaking has signed a memorandum of understanding (MoU) with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) to develop the shipyard, which will have a design capacity of 1.2 million Gross Tonnage (GT) a year. The investment will be subject to the requisite approvals and statutory clearances.

The proposed facility is expected to build a range of commercial vessels, including tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels. The capacity could subsequently be expanded depending on market requirements.

The MoU was signed in the presence of Chief Minister N. Chandrababu Naidu by Capt. Jagmohan (Retd.), Chairman and Managing Director, MDL, and Praveen Adhithya, Managing Director, NSHIP-AP in Amaravati on Friday. 

The Andhra Pradesh government is planning a broader Shipbuilding-cum-Port Cluster at Dugarajapatnam. According to the Techno-Economic Feasibility Report, the shipbuilding and ship-repair yard is estimated to cost about ₹29,254 crore, while the proposed port is estimated at ₹9,513 crore. The port is proposed to be developed by the Government of India.

MDL has been identified as the Anchor Shipyard for the cluster, which is being developed under the Centre’s Shipbuilding Development Scheme (SbDS). NSHIP-AP is a special purpose vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority.

The project is expected to catalyse the development of an ancillary ecosystem around shipbuilding, with opportunities across marine engineering, manufacturing, logistics and allied industries.

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Speaking on the occasion, Chief Minister Chandrababu Naidu said the Dugarajapatnam cluster, with MDL as the Anchor Shipyard, would help position Andhra Pradesh as a major shipbuilding hub while attracting investments and ancillary industries to the State, he added. 

According to Jagmohan, Dugarajapatnam had the scale and maritime potential to support a globally competitive shipyard. MDL was aiming at establishing a modern facility capable of serving both domestic and international markets, he said.

Jasmeet Singh Bindra, Chairperson, Visakhapatnam Port Authority, said VPA, which holds a 50 percent shareholding in NSHIP-AP, would support the development of the cluster and coordination with the Centre and other Central government agencies.

The Andhra Pradesh Maritime Board will facilitate land, infrastructure and statutory clearances required for the timely implementation of the project, according to a release. 

Published on September 18, 2026