Published Sep 18, 2026 | 3:11 PM ⚊ Updated Sep 18, 2026 | 3:11 PM
The MoU was signed in the presence of Chief Minister N. Chandrababu Naidu.
Synopsis: Mazagon Dock Shipbuilders Limited (MDL) has signed an MoU with NSHIP-AP to establish a greenfield shipyard at Dugarajapatnam, with an investment of around Rs 15,000 crore over five to seven years. The project is expected to create 45,000 direct and indirect jobs and have an annual capacity of 1.2 million gross tonnes.
The Government of Andhra Pradesh has signed a key agreement with Navratna Defence PSU Mazagon Dock Shipbuilders Limited (MDL) to establish a greenfield shipyard in Dugarajapatnam, as part of a major push to strengthen the state’s maritime sector.
The Memorandum of Understanding (MoU) was signed in the presence of Chief Minister N. Chandrababu Naidu. The agreement was made between MDL and the National Shipbuilding and Heavy Industries Park–AP (NSHIP-AP), a Special Purpose Vehicle (SPV) jointly formed by the AP Maritime Board and the Visakhapatnam Port Authority.
Minister BC Janardhan Reddy, AP Maritime Board Chairman Damacharla Satya, MDL CMD Jagmohan, Visakhapatnam Port Authority Chairperson Jasmeet Singh Bindra and other senior officials were also present at the signing of the MoU.
MDL will invest nearly Rs 15,000 crore over the next five years to construct the modern greenfield shipyard at Dugarajapatnam. The project is expected to create direct and indirect employment opportunities for around 45,000 people in the state.
In addition to shipbuilding, it is expected to generate significant employment and investment opportunities in ancillary industries, marine engineering, logistics, services and other related sectors.
The proposed shipyard will have an annual shipbuilding capacity of 12 lakh gross tonnes (1.2 million GT), with scope for further expansion to meet future market requirements. It will be designed to build tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels.
The facility will enable the state to build ships not only for domestic requirements but also for international markets.
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The state government envisages a shipbuilding-cum-port cluster at Dugarajapatnam. According to the Techno-Economic Feasibility Report (TEFR), the estimated cost of the shipbuilding and ship repair yard is around Rs 29,254 crore, while port development is estimated to cost approximately Rs 9,513 crore.
The central government has approved the development of the Dugarajapatnam port. The shipbuilding cluster will also be developed under the central government’s Shipbuilding Development Scheme, with MDL being selected as the anchor shipyard.
The Dugarajapatnam project is expected to contribute to India’s objective of becoming one of the world’s leading shipbuilding nations by 2047. The project will be developed in line with the objectives of the Maritime Amrit Kaal Vision 2047 and the Central Government’s Shipbuilding Development Scheme.
(Edited by Fayisa CA)
