Andhra Pradesh Advances Shipbuilding Ambitions

Andhra Pradesh is on the brink of transforming its maritime landscape with ambitious plans to develop a shipbuilding and repair cluster along its extensive coastline. The state government is capitalizing on a renewed focus from the central government, which has identified Dugarajapatnam as a key site for this initiative. With a goal of capturing 25% of India’s shipbuilding capacity by 2047, Andhra Pradesh is taking significant steps to establish itself as a leader in the maritime sector.

Strategic Developments in Shipbuilding

The Government of India has prioritized the development of the shipbuilding sector as part of its Maritime Amrit Kaal Vision 2047, providing a significant boost to Andhra Pradesh’s plans. Dugarajapatnam, located in the Tirupati district, has been earmarked as one of five critical sites for this initiative, alongside locations in Tamil Nadu, Gujarat, Odisha, and Maharashtra. The Andhra Pradesh government aims to create a ‘global shipyard’ that meets both current and future demands in shipbuilding.

To facilitate this vision, the Andhra Pradesh government approved the AP Maritime Policy 2024-29 late last year. A pivotal move was the establishment of the National Shipbuilding & Heavy Industries Park Andhra Pradesh Limited (NSHIP-AP Ltd.), which will develop essential infrastructure such as dredging, waterfronts, and dry docks. This initiative will lease land to private shipbuilders within the Dugarajapatnam cluster.

In addition, the Andhra Pradesh Maritime Board (APMB) has signed a Memorandum of Understanding (MoU) with the Visakhapatnam Port Authority to implement the project. During the CII Partnership Summit 2025, APMB also secured agreements with major defense public sector undertakings, including Hindustan Shipyard Limited (HSL) and Goa Shipyard Limited (GSL), to act as anchor investors for the Dugarajapatnam cluster and smaller facilities in Kakinada, a region with a rich shipbuilding heritage.

The Dugarajapatnam cluster is projected to achieve an impressive capacity of 1.20 million gross tonnage per year. Furthermore, the government is exploring additional shipbuilding and repair facilities in Srikakulam and Visakhapatnam (Gangavaram) districts. APMB CEO Abhishek Kumar emphasized that the government is committed to developing not only a mega shipbuilding yard at Dugarajapatnam but also promoting smaller units across the state.

Future Prospects and Investments

Currently, 3,500 acres of land have been identified for the Dugarajapatnam cluster, and the acquisition process is underway. The Government of India has granted in-principle clearance for the project, and efforts are being made to find a public-private partnership (PPP) partner. Additionally, the Andhra Pradesh government has issued a Request for Proposal to develop another shipbuilding cluster at Machilipatnam, with a submission deadline set for April 15.

Andhra Pradesh Greenlights Major Maritime Projects in Tirupati District

On March 12, IT & HRD Minister Nara Lokesh laid the foundation for an autonomous maritime shipyard and systems development center at Juvvaladinne fishing harbor in Nellore district, backed by an initial investment of ₹45 crore from Sagar Defence Engineering. These proposed shipbuilding clusters will complement the existing capabilities of Hindustan Shipyard (HSL) in Visakhapatnam, which has evolved from traditional shipbuilding to a comprehensive maritime solutions provider since its establishment in 1941.

HSL has recently reported a turnaround in its fortunes, with profits rising significantly from ₹574 crore in 2019-20 to an expected ₹1,471 crore by 2024-25. The shipyard has delivered crucial projects to the Indian Navy, including the INS Nistar Diving Support Vessel and is actively engaged in various shipbuilding projects, including fleet support ships and submarine refits. The strategic Ship Building Centre in Visakhapatnam is also set to expand its capabilities, with plans for constructing nuclear-powered submarines in the coming decade.

As Andhra Pradesh moves forward with its shipbuilding ambitions, the state’s extensive coastline and strategic initiatives position it as a potential maritime powerhouse in India.