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Andhra Pradesh clears greenfield port and national mega shipbuilding cluster at Dugarajapatnam

#Infrastructure News#Infrastructure#India#Andhra Pradesh
Last Updated : 5th Jan, 2026
Synopsis

The Andhra Pradesh government has approved the establishment of a greenfield port and a National Mega Shipbuilding Cluster at Dugarajapatnam in Tirupati district, involving the acquisition of around 2,000 acres of land. The projects will be developed under the Shipbuilding Development Scheme of the Ministry of Ports, Shipping and Waterways. A special purpose vehicle will be formed between the Centre and the state to drive implementation, with equal participation from the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority. The initiative aims to significantly boost shipbuilding capacity and support India's long-term maritime ambitions.

The Andhra Pradesh government has granted permission to the Andhra Pradesh Maritime Board (APMB) to establish a greenfield port and a National Mega Shipbuilding Cluster at Dugarajapatnam in Tirupati district, marking a major step toward strengthening the state's maritime and industrial infrastructure. The projects will require the acquisition of approximately 2,000 acres of land and are proposed under the Shipbuilding Development Scheme of the Ministry of Ports, Shipping and Waterways.


According to a government order issued by Special Chief Secretary (Infrastructure & Investment Ports) MT Krishna Babu, the maritime board has been authorised to take all necessary steps for setting up the port and the shipbuilding cluster. To monitor and accelerate the development of the National Mega Shipbuilding Cluster, a special purpose vehicle (SPV) will be created jointly by the central government and the Andhra Pradesh government.

As per the scheme guidelines, the APMB will form a 50:50 SPV with the Visakhapatnam Port Trust, with equal representation from both the state government and the port trust on the board of directors. The Ministry of Ports, Shipping and Waterways will extend support to the SPV through its southern entities, including the Visakhapatnam Port Authority, to ensure coordinated implementation.

The state government has also permitted the APMB to complete land acquisition for the project, mobilise resources, and transfer the acquired land to the SPV as the state's equity contribution. In addition, the maritime board has been authorised to select a suitable development partner for the shipyard.

The proposed greenfield port and shipbuilding cluster will include the construction of an anchor shipyard with an annual capacity of 0.5 million gross tonnage, which is targeted to be achieved within 10 years of commissioning. The development will be coordinated by the Visakhapatnam Port Trust and the APMB.

The initiative aligns with the national goal of expanding India's shipbuilding capacity from the current levels to 4.5 million gross tonnage per year under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047. Through these efforts, India aims to emerge as one of the top five shipbuilding nations globally by 2047, with Andhra Pradesh expected to play a key role in this transformation.

Source - PTI

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