AP Forms SPV For Shipbuilding in Dugarajapatnam
The project will be implemented through a 50:50 special purpose vehicle (SPV) between the Andhra Pradesh Maritime Board and the Visakhapatnam Port Authority
Visakhapatnam: The state government has approved the incorporation of National Ship Building and Heavy Industries Park Andhra Pradesh Limited (NSIHP-AP Ltd.) as a special purpose vehicle (SPV) for the development of a world-class shipbuilding, ship-repair, and allied maritime industrial infrastructure at Dugarajapatnam.
The project will be implemented through a 50:50 special purpose vehicle (SPV) between the Andhra Pradesh Maritime Board and the Visakhapatnam Port Authority.
The initiative falls under the shipbuilding financial assistance policy (SBFA) Scheme of the government of India, and the selection of a strategic shipyard partner to develop the cluster will be undertaken in accordance with the scheme guidelines.
The Dugarajapatnam Shipbuilding Cluster will play a pivotal role in strengthening India’s shipbuilding and ship-repair ecosystem. It will catalyse the development of ancillary industries, generate large-scale direct and indirect employment, and promote coastal industrialisation in southern India.
With an estimated investment of `29,662 crore, the Dugarajapatnam Shipbuilding and Repair Cluster is poised to significantly contribute to the state's gross state domestic product (GSDP). Spread across 2,000 acres in Tirupati district and leveraging Andhra Pradesh’s 974-km-long coastline, the project aims to reduce import dependence and attract substantial domestic and global investments.
The integrated maritime hub will feature four dry docks, ship-lift facilities, and state-of-the-art supporting infrastructure, establishing Andhra Pradesh as a premier shipbuilding destination. The project envisages creating a shipbuilding capacity of 1.2 million Gross Tonnage Per Annum (GTPA) and will serve as a major centre for shipbuilding, ship repair, and marine fabrication, further strengthening India’s Make in India initiative. The facility will also reduce logistics costs for regional industries, thereby enhancing manufacturing competitiveness, trade efficiency, and export potential.
Additionally, the project is expected to attract ancillary investments ranging between `8,000 crore and `10,000 crore from ship component manufacturers, marine equipment suppliers, and logistics service providers, further amplifying its economic impact.
