Mazagon Dock Shipbuilders to invest Rs 15,000 crore in Andhra shipyard

HYDERABAD: Mazagon Dock Shipbuilders (MDL) is set to invest around Rs 15,000 crore in Andhra Pradesh over the next five to seven years to develop a greenfield shipyard at Dugarajapatnam, under an MoU signed with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP), a special purpose vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority.

The proposed yard is expected to generate around 45,000 direct and indirect jobs and have an initial design capacity of 1.2 million gross tonnes (GT) a year. It will build commercial vessels including tankers, bulk carriers, container ships and LNG carriers.

The project is part of Andhra Pradesh’s proposed greenfield shipbuilding-cum-port cluster at Dugarajapatnam. The state’s techno-economic feasibility report estimates the shipbuilding and ship-repair yard at Rs 29,254 crore, while the port is estimated at Rs 9,513 crore and is proposed to be developed by the Centre. The shipbuilding cluster is being developed under the centre's shipbuilding development scheme.


The development comes after MDL had already signed an MoU with Tamil Nadu in September 2025 to explore a greenfield shipyard on the eastern coast in Thoothukudi. Tamil Nadu, however, moved ahead with HD Korea Shipbuilding & Offshore Engineering as the anchor for this cluster.

The Centre's current framework envisages one greenfield shipbuilding cluster per state, with Andhra Pradesh and Tamil Nadu among five states that have received in-principle approval. The Dugarajapatnam cluster has 3,488 acres and around 2.1 km of waterfront, while Thoothukudi has 2,050 acres and around 2.4 km of waterfront.