Mazagon Dock Shipbuilders Plans ₹26,000 Crore Shipbuilding Cluster in Dugarajapatnam, Andhra Pradesh
Mazagon Dock Shipbuilders Limited (MDL), a Navratna defence public sector undertaking, has expressed readiness to develop a proposed shipbuilding cluster at Dugarajapatnam in Andhra Pradesh. Company representatives recently held discussions with Chief Minister N Chandrababu Naidu on the proposal. According to official estimates, MDL could invest approximately ₹26,000 crore in developing the cluster, and the state government is considering entering into an agreement with the company for construction of the Dugarajapatnam shipyard.
During discussions, MDL proposed a 30 per cent subsidy on capital investment, and the state government is evaluating the quantum of subsidy that could be sanctioned. Under the proposed funding structure, the central government will bear the cost of common port infrastructure at Dugarajapatnam, while the state government will provide the land for the shipbuilding cluster.
The Andhra Pradesh Maritime Board has initiated action to acquire 2,200 acres of land for construction of the port and shipyard. Of this, 1,000 acres has been earmarked for the shipyard and 1,350 acres for ancillary industries. The AP Maritime Board and the Visakhapatnam Port Authority will jointly oversee development of the port and shipbuilding cluster.
The state government has issued an Expression of Interest to appoint a technical consultant for preparing a Detailed Project Report covering the Dugarajapatnam port and the shipbuilding and ship repair cluster. Proposals from interested firms were scheduled for evaluation on August 24, after which a consultant will be selected to prepare cost estimates and a master plan, including the shipyard layout for the port and cluster.