Andhra Pradesh unveils maritime push with shipbuilding cluster

Andhra Pradesh is taking significant steps to establish itself as a major hub for shipbuilding and shipbreaking. The state government is currently in discussions with the Union Ministry of Ports, Shipping, and Waterways to create a mega shipbuilding cluster. This initiative is part of the newly launched AP Maritime Policy, which aims to attract investments and promote the shipbuilding industry through various fiscal incentives.

Incentives to Boost Shipbuilding Investments

The AP Maritime Policy offers a range of attractive incentives for investors. These include a capital subsidy of up to 25% on investments, full reimbursement of State Goods and Services Tax (SGST) for ten years, and an additional 20% SGST reimbursement for the first five ships manufactured. Furthermore, investors can benefit from production-linked incentives that cover up to 25% of their costs. The policy also provides exemptions from stamp duty, electricity duty, and utility subsidies for water and power.

To facilitate the development of shipbuilding clusters, the Andhra Pradesh Maritime Board is offering long-term land leases and single-window clearances. The government is also committed to supporting innovation and sustainability in the industry by providing 75% reimbursement on feasibility study costs and 100% reimbursement for environmentally friendly ship technologies. The Centre is currently working on establishing a shipbuilding cluster in Dugarajapatnam, Tirupati district, with plans for a Special Purpose Vehicle (SPV) to be formed between the state and the Centre. This initiative is expected to create approximately 148,000 direct and indirect jobs in Andhra Pradesh once operational.

AP intends to build a logistics hub and coastal highway in Tarluwada

Garuda Aerospace Plans Major Investment

In addition to the shipbuilding initiative, Garuda Aerospace, a Chennai-based drone manufacturer, has proposed a ₹250 crore investment to establish a large-scale production unit in Andhra Pradesh. Company representative Shyam Kumar recently met with Minister BC Janardhan Reddy to discuss the expansion of operations in the state. Garuda Aerospace has gained national recognition for supplying over 500 drones under Operation Sindoor and is known for its expertise in drone manufacturing.

Minister Janardhan Reddy welcomed Garuda’s proposal, highlighting Andhra Pradesh’s emergence as a preferred destination for new investments. He expressed confidence that ventures like Garuda’s would create substantial employment and livelihood opportunities for the youth of the state. As Andhra Pradesh continues to attract significant investments, the government remains focused on fostering a robust maritime industry that can drive economic growth and job creation.