Mazagon Dock Plans Rs 15,000 Crore Investment in New Andhra Shipyard

Mazagon Dock Shipbuilders (MDL) plans to invest around Rs 15,000 crore investment in Andhra Pradesh over the next five to seven years to develop a new greenfield shipyard at Dugarajapatnam.

The project is being taken forward under a Memorandum of Understanding (MoU) signed between MDL and the National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP), a special purpose vehicle formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority.

The proposed Andhra Pradesh shipyard is part of the state’s wider plan to establish a shipbuilding and ship-repair cluster at Dugarajapatnam. The project is expected to strengthen maritime infrastructure, create employment opportunities and support industries linked to shipbuilding and ship repair. The investment is subject to the required statutory approvals and clearances.

Shipyard to Build Large Commercial Vessels

The proposed facility is expected to have an initial design capacity of 1.2 million gross tonnes annually, with scope for expansion depending on market requirements. MDL plans to use the yard to construct a range of commercial vessels, including tankers, bulk carriers, container ships and LNG carriers, along with other specialised large vessels.

The project is also expected to generate around 45,000 direct and indirect jobs, creating opportunities across shipbuilding, engineering, logistics, fabrication, maintenance and other supporting industries. The development could also encourage ancillary businesses and suppliers to establish operations around the proposed maritime cluster.

The Dugarajapatnam shipbuilding cluster covers around 3,488 acres and has approximately 2.1 km of waterfront, providing space for large-scale shipbuilding and related industrial activities. Andhra Pradesh has identified the location as part of its efforts to expand its maritime and industrial infrastructure along the state’s coastline.

Andhra Pradesh Expands Maritime Infrastructure

According to the state’s techno-economic feasibility report, the proposed shipbuilding and ship-repair yard is estimated to require an overall investment of about Rs 29,254 crore. The port component has been estimated at approximately Rs 9,513 crore and is proposed to be developed by the Government of India. The shipbuilding cluster is being developed under the Centre’s Shipbuilding Development Scheme (SbDS).

NSHIP-AP has identified Mazagon Dock Shipbuilders as the anchor shipyard for the Dugarajapatnam cluster. The special purpose vehicle was jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority to support the development of the project.

MDL Chairman and Managing Director Capt Jagmohan said Dugarajapatnam offers the scale and maritime potential needed to develop a globally competitive shipyard. The company intends to develop a modern facility capable of serving both domestic and international markets.

The Andhra Pradesh Maritime Board is expected to facilitate land, infrastructure and statutory clearances needed for the project. The Visakhapatnam Port Authority has also indicated its commitment to supporting coordination with the central government and other agencies involved in the development.

The investment comes as Andhra Pradesh seeks to expand its presence in the Indian shipbuilding sector and attract manufacturing and maritime-related investments. The state is among the five states that have received in-principle approval for greenfield shipbuilding clusters under the Centre’s current framework.

MDL had also signed an MoU with Tamil Nadu in September 2025 to explore a greenfield shipyard at Thoothukudi. However, Tamil Nadu subsequently moved ahead with HD Korea Shipbuilding & Offshore Engineering as the anchor for its proposed cluster.

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The Dugarajapatnam project represents a major proposed expansion of MDL’s shipbuilding footprint and could contribute to the development of a broader commercial shipbuilding ecosystem on India’s eastern coast.