Mazagon Dock to invest ₹15,000 crore in Andhra Pradesh shipyard

Mazagon Dock Shipbuilders Limited will invest approximately ₹15,000 crore to establish a merchant shipbuilding facility at Dugarajapatnam in Tirupati district, marking the Defence Ministry's Navratna company's entry into commercial vessel construction with an annual capacity of 1.2 million gross tonnes.

The defence shipbuilder signed a Memorandum of Understanding on Friday with the National Shipbuilding and Heavy Industries Park-Andhra Pradesh (NSHIP-AP), a special purpose vehicle owned equally by the Andhra Pradesh Maritime Board and the Visakhapatnam Port Authority. The agreement was formalised at the Secretariat in the presence of Chief Minister N. Chandrababu Naidu.

Investment timeline and employment generation

MDL's ₹15,000-crore investment will be deployed over five to seven years, according to a government release. The project is expected to generate about 45,000 direct and indirect jobs.

Vessel production plans

The new yard will manufacture tankers, bulk carriers, container ships, liquefied natural gas carriers and other large specialised vessels targeting both domestic and export markets, with provisions to expand capacity if demand increases.

The State government envisions a shipbuilding-cum-port cluster at Dugarajapatnam. A techno-economic feasibility report estimates the shipbuilding and ship repair yard at ₹29,254 crore and the port at ₹9,513 crore.

Government approvals and funding structure

The Centre has approved the port and its development, with the cluster falling under the Union government's Shipbuilding Development Scheme. NSHIP-AP has selected MDL as its anchor shipyard. The release does not explain how the yard's cost beyond MDL's ₹15,000-crore commitment is to be met.

Mr. Naidu positioned the project within the national target outlined in the Maritime Amrit Kaal Vision 2047, which aims to make India one of the world's top five shipbuilding nations by 2047.

"Andhra Pradesh is committed to being at the forefront of this journey by leveraging its long coastline, strategic location and industrial ecosystem," he said. The Chief Minister stated the cluster would establish the State as a major shipbuilding hub, attract ancillary industries, and create employment in shipbuilding, marine engineering, manufacturing and logistics.

Captain Jagmohan (retd), Chairman and Managing Director of MDL, said Dugarajapatnam had the scale and maritime potential for a globally competitive shipyard.

State support and implementation

The Andhra Pradesh Maritime Board will provide land and infrastructure and secure the statutory clearances required for the project, the release said. Roads and Buildings Minister B.C. Janardhan Reddy, Andhra Pradesh Maritime Board Chairman Damacharla Satya, Visakhapatnam Port Authority Chairperson Jasmeet Singh Bindra and senior officials attended the signing ceremony.

Source: The Hindu