Mazagon Dock Shipbuilders announced that it has signed a memorandum of understanding (MoU) to develop a greenfield shipyard at Dugarajapatnam in Andhra Pradesh.

The company plans to invest around Rs 15,000 crore in the project over the next five to seven years, subject to regulatory approvals and clearances.

The MoU was signed with the National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP), a special purpose vehicle formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority. Mazagon Dock will act as the anchor shipyard for the proposed Dugarajapatnam shipbuilding cluster.

The proposed facility is expected to have an annual design capacity of 1.2 million gross tonnes, with scope for expansion depending on market requirements. It will focus on commercial vessels such as tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels. This will expand Mazagon Dock’s presence beyond its established defence shipbuilding and submarine businesses.

The project is also expected to create around 45,000 direct and indirect jobs in Andhra Pradesh. The state government expects the shipyard to support the development of related industries, including marine engineering, manufacturing, logistics and other ancillary businesses.

The Dugarajapatnam project forms part of Andhra Pradesh’s broader plan to develop a greenfield shipbuilding-cum-port cluster. According to the state’s techno-economic feasibility report, the proposed shipbuilding and ship-repair yard has an estimated cost of around Rs 29,254 crore, while the port component is estimated at Rs 9,513 crore.

The development comes as India looks to expand its domestic shipbuilding capacity and increase its presence in the global commercial shipping market. Mazagon Dock’s role as anchor shipyard could also help create a wider maritime ecosystem around the proposed facility.

The company had earlier announced plans for another greenfield shipbuilding cluster in Maharashtra. 

The Andhra Pradesh project therefore adds another major expansion initiative as Mazagon Dock looks to build capacity for both domestic and international commercial shipbuilding demand.

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