AP Maritime Board and Visakhapatnam Port Join Hands to Develop Dugarajapatnam Shipbuilding Hub.

Andhra Pradesh Maritime Board and 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.

The SPV, named National Shipbuilding & Heavy Industries Park Andhra Pradesh Ltd (NSHIP-AP Ltd), will be a 50:50 joint venture between the two entities. It has been tasked with planning, developing, and operationalising a greenfield port and a mega shipbuilding cluster in the state’s Tirupati District, aimed at promoting shipbuilding, ship repair, heavy engineering, and associated marine infrastructure.

NSHIP-AP Ltd will also facilitate land allotment to shipyards, ancillary industries, and maritime industrial units within the cluster, implement projects through public-private partnerships or other commercial models, coordinate with private shipyard developers, mobilise resources, execute contracts, prepare detailed project reports and feasibility studies, and oversee project management and monitoring. The SPV will serve as a key driver for establishing an integrated maritime manufacturing ecosystem.

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 be the second shipbuilding cluster SPV in a coastal state after Tamil Nadu. The Union government has allocated ₹19,989 crore for the Shipbuilding Development Scheme, which plans to develop three to four greenfield shipbuilding clusters across India, with 100% capital support for common infrastructure through centre–state SPVs and 25% assistance for brownfield expansion of existing shipyards.

In the SPV, 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 boost India’s shipbuilding capacity and maritime manufacturing ecosystem.