Nods for Rs 30,000 crore shipbuilding cluster in Andhra Pradesh this month: Minister Sonowal

The Centre is likely to give in-principle approvals for a Rs 30,000-crore mega shipbuilding cluster in Andhra Pradesh this month as it looks to increase the fleet size of India-flagged vessels, union ports, shipping and waterways minister Sarbananda Sonowal told ET.

The minister said long-pending projects of inland waterways and port expansion in West Bengal are expected to pick up pace with Bharatiya Janata Party (BJP) forming the government in the state.

He also reiterated that no Indian flagged or linked vessels have been asked to pay a toll at the Strait of Hormuz. “West Asia crisis is, without doubt, one of the most significant disruptions to global shipping,” he said, adding India has repatriated over 3,000 seafarers since the situation escalated.

According to official data, shipping services to alternate ports in West Asia have been aggressively scaled up, from 105 sailings in February to 232 in April.

“This ensures connectivity is maintained even as traditional routes face disruption. I have personally chaired multiple high-level review meetings to ensure that no issue lingers unresolved, and that no stakeholder is left without an answer,” Sonowal said.

Increasing domestic tonnage
India has aggregated demand for 437 vessels worth approximately Rs 2.2 lakh crore across key government-backed stakeholders. These will be procured over the next two decades and bids will have preference for domestic suppliers.

Sonowal said his ministry has put a structured shipbuilding model in place.

“Even for complex vessels like very large gas carriers (VLGCs), the model ensures that only one out of four are constructed at a global yard, while the rest (are built) in India,” he said.

Dugarajapatnam in Andhra Pradesh is being developed as India’s first mega shipbuilding cluster with an expected capacity of 1.2 million gross tonnage. Sonowal said in-principle approval for the proposed National Shipbuilding and Heavy Industries Park is expected this month.

Poll outcomes and maritime development

BJP has retained Assam in the recent assembly polls and formed a government for the first time in West Bengal.

“People of the country have reposed faith in the leadership of Prime Minster Narendra Modi and given opportunity to us for fulfilling their aspirations right from Gangotri to Ganga Sagar,” Sonowal said. He listed the modernisation and renovation work of existing Navigational Lock at Farakka (West Bengal) among the projects that will pick up pace. Northeast India's first major ship repair facility in Pandu (Assam) is slated for completion by October 2026.

But the party’s performance in southern states of Tamil Nadu and Kerala, which are crucial for port and mega shipyard development, has not been as resounding.

“Our priority is always development and we do not discriminate against opposition-ruled states,” Sonowal said, noting an in-principle South Korean shipbuilding major Hyundai’s facility in Tamil Nadu is also in place, despite it being a non-BJP alliance ruled state.