The potential for development of a shipbuilding and repair cluster in Andhra Pradesh (AP), which has the country’s third longest coastline in India, as per the revised estimates promulgated by the Ministry of Ports Shipping and Waterways, has been a wasted opportunity for decades but the State government is closer to realising it than ever before.
What has come as a boost to the government’s plans to put its resource – rich, 1,053 kilometer – long coast to optimum use is the push given by the Centre to development of the shipbuilding sector as part of its Maritime Amrit Kaal Vision 2047.
Going into the specifics, the Government of India (GoI) identified Dugarajapatnam in Tirupati district as one of the five key sites for its ambitious shipbuilding cluster initiative, Tamil Nadu, Gujarat, Odisha and Maharashtra being the others.
In line with India’s maritime vision, the AP Government had resolved to establish a ‘global shipyard’ to cater to the present as well as future demand with the underlying objective of having a 25% share in the national ship building capacity by 2047.
Towards achieving it, the Government of AP (GoAP) had late last year approved the AP Maritime Policy 2024 – 29.
In a significant step forward, the GoAP formed a SPV named National Shipbuilding & Heavy Industries Park Andhra Pradesh Limited (NSHIP – AP Ltd.) under the provisions of Companies Act, 2013 earlier this month for developing the common infrastructure (dredging, waterfront, dry docks, and utilities) and leasing the land to private shipbuilders in the Dugarajapatnam cluster.
Prior to this, the AP Maritime Board (APMB) had entered into a MoU with the Visakhapatnam Port Authority (VPA) for implementing the project.
Besides, APMB had, during the CII Partnership Summit – 2025, signed MoUs with defence PSUs Hindustan Shipyard Limited (HSL), Garden Reach Shipbuilders & Engineers Limited (GRSE) and Goa Shipyard Limited (GSL), to have them as the anchor investors not only for the Dugarajapatnam cluster but also smaller shipbuilding facilities at places like Kakinada, which incidentally had centuries – old legacy in shipbuilding.
Dugarajapatnam cluster is targeted to have a 1.20 Million Gross Tonnage capacity per year.
The other locations where the possibility to develop shipbuilding and repair facilities is being explored are in Srikakulam and Visakhapatnam (Gangavaram) districts.
As far as the development of shipbuilding clusters is concerned, APMB CEO Abhishek Kumar told The Hindu that the government has not only planned to develop a mega shipbuilding yard at Dugarajapatnam but also promote smaller units at other places.
As on date, 3,500 acres of land has been identified for the Dugarajapatnam cluster including downstream industries and the process of acquisition has begun.
According to highly placed sources in the Infrastructure & Investments Department, the GoI gave in-principle clearance to the project and search is on for a PPP partner.
This apart, the GoAP has last month published a Request for Proposal to develop another shipbuilding cluster at Machilipatnam and set April 15 as the deadline for submitting tenders.
On March 12, IT & HRD Minister Nara Lokesh laid the foundation for an autonomous maritime shipyard and systems development centre to be developed by Sagar Defence Engineering with an initial investment of Rs.45 crore at Juvvaladinne fishing harbour in Nellore district.
The proposed shipbuilding clusters will add to the existing capacity at the Hindustan Shipyard (HSL) in Visakhapatnam, which is India’s oldest and first modern shipbuilding yard established in 1941 by the Scindia Steam Navigation Company Ltd and nationalized and renamed later.
From its humble origins as a conventional shipbuilder, the HSL facility transformed into a comprehensive maritime solutions provider, delivering commercial ships, complex Naval platforms, submarine refits, ship repairs, and technologically advanced vessels such as INS Dhruv, which is a research vessel and missile range instrumentation ship.
Steeped in losses for several years, HSL is now registering profits, with its turnover increasing from Rs.574 crore in 2019 – 20 to Rs.1,471 crore in 2024 – 25.
HSL has recently delivered two strategically important projects to the Indian Navy—INS Nistar, a Diving Support Vessel (first of its class), in July 2025, and a floating dock in December 2025.
The CPSE’s ongoing shipbuilding projects include one diving support vessel and five fleet support ships for the Indian Navy and it has emerged as L1 for the construction of 18 next – generation fast patrol vessels.
HSL is also actively exploring opportunities for normal and medium refits of submarines.
Preparatory activities for undertaking the Medium Refit Life Certification of INS Sindhuvijay at HSL, the first time in India, are being expedited.
This apart, Visakhapatnam also houses the strategic high-security submarine-building unit known as the Ship Building Centre under the Ministry of Defence.
This highly secretive yard, tucked within the Eastern Naval Command, specialises in the indigenous construction of nuclear – powered submarines.
SBC has already built SSBNs (Ship Submersible Ballistic Nuclear) submarines, such as INS Arihant and INS Arighaat, both of which have been commissioned. Trials are underway for INS Aridhaman and S4* (yet to be named). It is learnt that construction of S5, a larger version of the Arihant-class submarine, has already begun.
Sources say that SBC will also construct at least six nuclear-powered attack submarines (SSNs), also known as hunter-killers, over the next 10 years, with at least two expected to roll out by 2036.
This copy has been updated to amend a factual error
Published – March 29, 2026 07:02 am IST
Source: https://www.thehindu.com/business/ap-poised-for-a-leap-in-shipbuilding-ship-repair-cluster/article70797338.ece
