Mazagon Dock Shipbuilders Limited (MDL), a Navratna Defence public sector undertaking under the Ministry of Defence, will develop a modern greenfield shipyard at Dugarajapatnam in Andhra Pradesh, following the signing of a Memorandum of Understanding on 18 September 2026. The project, backed by a planned investment of approximately ₹15,000 crore over five to seven years, is expected to generate employment for around 45,000 people in the state.

MoU Signed in Presence of CM Naidu

The MoU was signed between MDL Chairman and Managing Director Captain Jagmohan (retd) and National Shipbuilding and Heavy Industries Park-Andhra Pradesh (NSHIP-AP) Managing Director Praveen Adhithya in the presence of Chief Minister N. Chandrababu Naidu at a formal ceremony on Friday. NSHIP-AP is a Special Purpose Vehicle jointly formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority (VPA), and has designated MDL as the anchor shipyard for the cluster.

The investment commitment is subject to the required approvals and statutory clearances, officials noted. The Andhra Pradesh Maritime Board will facilitate land allocation, infrastructure support, and regulatory clearances needed for timely project execution.

Scale and Scope of the Shipbuilding Cluster

The Andhra Pradesh government's Techno-Economic Feasibility Report estimates the total shipbuilding and ship repair yard cost at approximately ₹29,254 crore, with the associated port infrastructure pegged at ₹9,513 crore — the latter proposed to be developed by the Centre. The proposed shipyard will carry a design capacity of 1.2 million Gross Tonnage per annum, with scope for further expansion based on market demand.

The facility is intended to build a wide range of commercial vessels including tankers, bulk carriers, container ships, LNG carriers, and other large specialised vessels, targeting both domestic and international markets. The broader shipbuilding cluster is being developed under the Centre's Shipbuilding Development Scheme (SbDS).

What the Key Stakeholders Said

Chief Minister Naidu said Andhra Pradesh is committed to being at the forefront of India's maritime ambitions. 'India has set an ambitious vision of becoming 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.

Naidu added that the Dugarajapatnam cluster, with MDL as the anchor shipyard, would position the state as a major shipbuilding hub and attract ancillary investments across shipbuilding, marine engineering, manufacturing, and logistics sectors.

MDL CMD Captain Jagmohan (retd) said Dugarajapatnam has the scale and maritime potential to develop a globally competitive shipyard, with MDL aiming to create a modern facility serving both domestic and international markets. VPA Chairperson Jasmeet Singh Bindra said VPA, as a 50% shareholder in NSHIP-AP, is committed to supporting coordination with the Central government and other central agencies.

Andhra Pradesh's Secretary for Infrastructure and Investment, Kona Sasidhar, described the selection of MDL as the anchor shipyard as an important milestone in the state's maritime development, with the potential to create a major shipbuilding and ancillary ecosystem at Dugarajapatnam.

Strategic Context and India's 2047 Shipbuilding Goal

India currently accounts for a fraction of global shipbuilding output, with South Korea, China, and Japan dominating the sector. The Centre's push through the Shipbuilding Development Scheme signals a policy intent to change that calculus, with Andhra Pradesh's long eastern coastline and proximity to major shipping lanes offering logistical advantages. Notably, this is among the largest single commitments under the SbDS framework since its rollout.

With the MoU now formalised, all eyes will be on the pace of statutory clearances and land acquisition — historically the most time-consuming stages of large coastal infrastructure projects in India.