Maritime Might: AP’s New ₹20,000 Crore Shipbuilding Frontier

The Andhra Pradesh Maritime Board and the Visakhapatnam Port Authority have signed a Memorandum of Understanding (MoU) to establish a special purpose vehicle (SPV) for developing a National Mega Shipbuilding Cluster at Dugarajapatnam in Andhra Pradesh.

The SPV, named National Shipbuilding & Heavy Industries Park Andhra Pradesh Ltd (NSHIP-AP Ltd), will function as a 50:50 joint venture between the two organisations. It will be responsible for planning, developing, and operationalising a greenfield port along with a mega shipbuilding cluster in Tirupati district, aimed at promoting shipbuilding, ship repair, heavy engineering, and related maritime infrastructure.

NSHIP-AP Ltd will also oversee the allotment of land to shipyards, ancillary industries, and maritime manufacturing units within the cluster. In addition, it will implement projects through public–private partnerships and other commercial models, coordinate with private shipyard developers, mobilise resources, prepare detailed project reports and feasibility studies, execute contracts, and monitor overall project implementation. The SPV is expected to play a key role in creating an integrated maritime manufacturing ecosystem in the region.

The initiative aligns with the Government of India’s Shipbuilding Development Scheme, Maritime India Vision 2030, and Maritime Amrit Kaal Vision 2047. NSHIP-AP Ltd will become the second shipbuilding cluster SPV in a coastal state after Tamil Nadu.

The Union government has allocated ₹19,989 crore under the Shipbuilding Development Scheme to establish three to four greenfield shipbuilding clusters across India. The scheme provides 100% capital support for common infrastructure through centre–state SPVs and 25% financial assistance for brownfield expansion of existing shipyards.

Under the joint venture structure, the Government of Andhra Pradesh will be represented by the Andhra Pradesh Maritime Board, while the Government of India will be represented by the Visakhapatnam Port Authority. The project is expected to significantly enhance India’s shipbuilding capacity and strengthen the country’s maritime manufacturing ecosystem.

News by Rahul Yelligetti.