Mazagon Dock Shipbuilders has signed an MoU with NSHIP-AP to develop a greenfield shipyard at Dugarajapatnam with an investment of around ₹15,000 crore and potential employment for 45,000 people.
Amaravati: Andhra Pradesh has taken a significant step towards developing its maritime and shipbuilding sector, with Mazagon Dock Shipbuilders Limited (MDL) signing an MoU with the National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) to develop a modern greenfield shipyard at Dugarajapatnam.
MDL, a Navratna Defence PSU under the Ministry of Defence, envisages an investment of around ₹15,000 crore over the next five to seven years, subject to the required approvals and clearances. The project is expected to generate direct and indirect employment opportunities for around 45,000 people in Andhra Pradesh.
The MoU was signed in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu by MDL Chairman and Managing Director Capt. Jagmohan (Retd.) and NSHIP-AP Managing Director Praveen Adhithya C.V., IAS.
Speaking on the development, Naidu said Andhra Pradesh would seek to play a significant role in India's ambition to become one of the world's top five shipbuilding nations by 2047.
He said the State would leverage its long coastline, strategic location and industrial ecosystem to expand maritime-sector activity.
Naidu said the Dugarajapatnam shipbuilding cluster, with MDL as the anchor shipyard, would help attract investments and ancillary industries in areas including shipbuilding, marine engineering, manufacturing and logistics.
The proposed shipyard will have a design capacity of 1.2 million Gross Tonnage (GT) per annum, with scope for expansion depending on market requirements.
The facility is proposed to build commercial vessels including:
The project is part of the proposed greenfield Shipbuilding-cum-Port Cluster at Dugarajapatnam. According to the State's Techno-Economic Feasibility Report, the shipbuilding and ship-repair yard is estimated at around ₹29,254 crore, while the proposed port component is estimated at ₹9,513 crore. The port is proposed to be developed by the Government of India.
The Dugarajapatnam shipbuilding cluster is being developed under the Government of India's Shipbuilding Development Scheme (SbDS).
NSHIP-AP, a special purpose vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, has identified MDL as the anchor shipyard.
MDL Chairman and Managing Director Capt. Jagmohan said Dugarajapatnam had the scale and maritime potential to support the development of a globally competitive shipyard serving domestic and international markets.
The project is expected to create employment across several sectors, including shipbuilding, marine engineering, manufacturing, logistics and related industries.
The State government said the anchor shipyard could help build a wider ancillary ecosystem around Dugarajapatnam, bringing supporting industries and services into the region.
Jasmeet Singh Bindra, Chairperson of the Visakhapatnam Port Authority, said VPA, which holds a 50% share in NSHIP-AP, would support development of the shipbuilding cluster and coordination with the Centre and other Central government agencies.
Kona Sasidhar, IAS, Secretary, Infrastructure & Investment, Government of Andhra Pradesh, described MDL's selection as the anchor shipyard as an important milestone in the State's maritime development.
He said the project could facilitate the development of a major shipbuilding and ancillary industrial ecosystem at Dugarajapatnam.
The Andhra Pradesh Maritime Board will facilitate land, infrastructure and statutory clearances required for the timely development of the project.
The MoU marks the latest development in Andhra Pradesh's plans to expand port-led industrialisation and strengthen its position in shipbuilding, ship repair, logistics and maritime manufacturing.
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