Situated about 60 km from Tirupati along the Nellore–Tirupati coast, Dugarajapatnam enjoys a strategic location, with road and rail connectivity dovetailing neatly into access to the Bay of Bengal.
Published Dec 31, 2025 | 8:00 AM ⚊ Updated Dec 31, 2025 | 8:00 AM
Andhra Pradesh Chief Minister N Chandrababu Naidu.
Synopsis: The decision was taken at the State Cabinet meeting chaired by Chief Minister N Chandrababu Naidu on Monday, 29 December, indicating a renewed push to turn Dugarajapatnam into a port-cum-shipbuilding and repair hub of national significance. The project traces its roots to the Andhra Pradesh Reorganisation Act, 2014, which promised a major port for the residuary state but saw little movement in the years that followed.
The Andhra Pradesh government has decided to fast-track the long-awaited greenfield port and national mega shipbuilding cluster at Dugarajapatnam in Tirupati district, breathing new life into a project that has lingered on the drawing board for over a decade.
The decision was taken at the State Cabinet meeting chaired by Chief Minister N Chandrababu Naidu on Monday, 29 December, indicating a renewed push to turn Dugarajapatnam into a port-cum-shipbuilding and repair hub of national significance. The project traces its roots to the Andhra Pradesh Reorganisation Act, 2014, which promised a major port for the residuary state but saw little movement in the years that followed.
Once earmarked during bifurcation as a potential deep-water port site, Dugarajapatnam had slipped through the cracks due to environmental objections, feasibility concerns and shifting policy priorities under previous regimes. Now, the Naidu government appears keen to retrieve the file from cold storage and steer it toward execution.
Situated about 60 km from Tirupati along the Nellore–Tirupati coast, Dugarajapatnam enjoys a strategic location, with road and rail connectivity dovetailing neatly into access to the Bay of Bengal. Officials say the site’s geography fits maritime infrastructure “like a glove,” offering a natural advantage for large-scale port and shipbuilding operations.
Momentum picked up on 19 December when Naidu met Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal in New Delhi, seeking the Centre’s support to notify Dugarajapatnam as a National Mega Shipbuilding Cluster. The Chief Minister told the Union Minister that agreements had been finalised for 3,488 acres of land and that a techno-economic feasibility report (TEFR) was already in place.
The proposal, Naidu argued, will be in-line with Prime Minister Narendra Modi’s “chip-to-ship” vision, which aims to strengthen India’s self-reliance across the manufacturing spectrum, from semiconductors to shipbuilding.
The groundwork for the project had been laid earlier. In September 2025, a tripartite Memorandum of Understanding (MoU) was signed between the Government of Andhra Pradesh, the Visakhapatnam Port Authority (VPA) and the Ministry of Ports, Shipping and Waterways. The agreement envisaged the creation of a globally competitive shipbuilding ecosystem in tune with Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.
Under the arrangement, the state government will take charge of landside infrastructure such as roads, utilities and civil works, while the VPA will handle seaside components including dredging and berths. Global private shipbuilding players are expected to come on board through a Special Purpose Vehicle (SPV), giving the project both muscle and maritime expertise.
The ambition swelled further on 30 October, when another MoU valued at ₹29,662 crore was signed between the VPA and the State government during India Maritime Week 2025 in Mumbai. This pact focuses on building an integrated port cluster with shipbuilding and repair facilities, expected to generate employment.
Economically, the project is expected to act as a rising tide lifting all boats in Tirupati district and beyond. Thousands of direct and indirect jobs are projected in ship construction, maintenance, logistics and allied sectors. Drawing parallels with maritime hubs in Gujarat and Tamil Nadu, experts believe Dugarajapatnam could emerge as a magnet for foreign investment from shipbuilding heavyweights such as South Korea, Japan and Europe.
That said, the road ahead is not without potholes. Environmental clearances remain a critical hurdle, given the site’s proximity to sensitive coastal ecosystems, including the Pulicat Lake bird sanctuary. Earlier objections from the Ministry of Environment and Forests had led to the shelving of a full-fledged port proposal in 2015. This time, officials stress that the greenfield project will emphasise sustainable design, eco-friendly construction and robust waste management systems.
Funding, too, remains a sticking point. While the State has committed land and initial infrastructure, central assistance will be crucial for capital-intensive components such as deep-water berths.
Union Minister Sonowal has already indicated the Centre’s support. Naidu, speaking to the media after his meeting, said the project would finally honour the promises of bifurcation. “This cluster will not only fulfill the assurances of the Reorganisation Act but also position Andhra Pradesh as a maritime powerhouse, opening new horizons for our youth,” he said.
(Edited by Sumavarsha)
