New Shipbuilding Hub in Dugarajapatnam to Boost Andhra Pradesh’s Maritime Sector

quick Summary

• Location: A shipbuilding cluster is proposed to be established at Dugarajapatnam in Tirupati district, Andhra Pradesh.
• Proclamation and Timeline: Prime Minister Narendra Modi is highly likely to announce the project in August 2025, with ground-breaking expected later, subject to approvals.
• Scope: It will be one of three clusters planned nationwide; the other two are slated for Tamil Nadu and Gujarat.
• Land & Setup:

– A 2,000-acre land parcel has been identified at Dugarajapatnam.
– Half the land will house shipbuilding facilities; the remainder will accommodate downstream industries.
– The Goverment of India (GoI), Andhra Pradesh government, and private shipbuilders will create a Special Purpose Vehicle (SPV) through a tripartite agreement to execute the project.

• Strategic Advantages of Dugarajapatnam:

– Higher draft depth (14 meters) compared to Machilipatnam (10 meters) or Bhavanapadu (10 meters).
– Benefits from provisions in the A.P. Reorganization Act, 2014 supporting seaport development at this location.

• current Shipbuilding Landscape:

– India currently does not build commercial vessels exceeding 1.50 lakh deadweight tonnage (DWT), even though large vessels are constructed for defense purposes globally by countries like Japan and Korea.

Indian Opinion Analysis

The establishment of a shipbuilding cluster in Andhra Pradesh marks a critically important step toward enhancing India’s maritime manufacturing capabilities. Currently dominated by countries such as Japan and South Korea, global commercial shipbuilding requires advanced technology paired with skilled labor. This initiative could allow India to reduce reliance on imports while diversifying industrial contributions beyond defense-oriented projects.

The selection of Dugarajapatnam over alternate locations reflects strategic choices based on geographical advantages such as available land area and favorable sea draft depth-indispensable factors for long-term competitiveness in this sector. Moreover, collaboration between GoI, state authorities, and private players through an SPV ensures both shared expertise and financial commitments.

If successfully implemented-with regulatory approvals already pending-it could bolster regional employment opportunities while integrating local downstream industries into national-level supply chains. However, achieving parity with dominant global entities remains ambitious but achievable if supported comprehensively at all stages.

Read more: The Hindu