Dugarajapatnam to host India’s first national mega shipbuilding cluster

By Admin

25 Sep, 2025

In a landmark move that promises to reshape India’s maritime future, the Government of Andhra Pradesh (GoAP) and the Visakhapatnam Port Authority (VPA), under the aegis of the Ministry of Ports, Shipping and Waterways (MoPSW), have signed a historic Memorandum of Understanding (MoU) to develop the country’s first National Mega Shipbuilding Cluster at Dugarajapatnam, Andhra Pradesh. The MoU was signed during the national maritime event “Transforming India’s Maritime Sector” held in Bhavnagar, Gujarat.

This agreement represents a milestone in India’s maritime journey, laying the foundation for a project that aims to boost domestic shipbuilding capacity and position Andhra Pradesh as a global hub for large-scale shipbuilding and repair.

Building a globally competitive shipbuilding ecosystem

The project will be implemented through a Special Purpose Vehicle (SPV), serving as the nodal body to coordinate between government agencies, private partners, and international firms. Global shipbuilders will be invited to participate, ensuring the adoption of cutting-edge technology, advanced design systems, and best practices in the industry.

• Government of Andhra Pradesh’s role: Lead development of landside infrastructure, including approach roads, utilities, and civil works, while contributing land as equity.
  
  

• Visakhapatnam Port Authority’s role: Focus on seaside infrastructure, such as berth construction, dredging, and allied maritime facilities.
  
  

With an estimated investment of Rs 29,253 crore, the project stands as one of the most ambitious maritime infrastructure initiatives undertaken in India.

Why Dugarajapatnam? Andhra Pradesh’s strategic edge

The choice of Dugarajapatnam highlights Andhra Pradesh’s inherent strengths in the maritime domain. The state already supports a thriving coastal economy with shipyards, fishing harbours, industrial corridors, and cargo terminals.

Key advantages include:

• Prime location on India’s eastern seaboard with direct access to major shipping lanes in the Bay of Bengal.
  
  

• Availability of skilled workforce and an expanding industrial base.
  
  

• Ecosystem to support both commercial shipping and defence shipbuilding, reducing India’s reliance on imports.
  
  

Alignment with national maritime vision

The Dugarajapatnam cluster is aligned with India’s long-term maritime roadmaps:

• Maritime India Vision 2030: Aims to scale up port, shipping, and logistics infrastructure to global standards.
  
  

• Maritime Amrit Kaal Vision 2047: Envisions India as a maritime superpower by its 100th year of independence, with shipbuilding at the core.
  
  

By advancing these goals, the project could elevate India’s position in the global shipbuilding market, currently dominated by China, South Korea, and Japan.

Economic and social impact

The cluster is expected to deliver wide-ranging benefits, including:

• Job creation: Tens of thousands of direct and indirect employment opportunities across engineering, shipbuilding, steel, logistics, and electrical sectors.
  
  

• Foreign Direct Investment (FDI): By partnering with global shipbuilders, India will gain access to world-class technology, eco-friendly practices, and advanced designs.
  
  

• Supply chain resilience: Strengthening India’s role in global trade while supporting national energy and food security.
  
  

Symbolism of Bhavnagar signing

The decision to sign the MoU in Bhavnagar, Gujarat a city with deep maritime heritage and known globally for ship recycling adds symbolic weight. It reflects the continuity of India’s maritime legacy and highlights the collaborative governance model, where Union and state governments, along with port authorities, combine efforts for national progress.

Toward a maritime renaissance

The National Mega Shipbuilding Cluster at Dugarajapatnam is not just an infrastructure project it is a strategic investment in India’s maritime future. With its scale, global partnerships, and transformative vision, the cluster has the potential to usher in a new era for India’s shipbuilding industry.

As the nation strives to be among the top five shipbuilding nations by 2047, Dugarajapatnam will serve as the cornerstone of this ambition. It marks the beginning of a maritime renaissance one that positions Andhra Pradesh as a global shipbuilding powerhouse and strengthens India’s standing in the international maritime landscape.