Mazagon Dock envisages INR 15,000 crore Dugarajapatnam shipyard
Mazagon Dock Shipbuilders has signed an MoU to anchor a proposed greenfield shipyard at Dugarajapatnam, envisaging INR 15,000 crore over five to seven years for a facility designed for 1.2 million gross tonnes a year.
Over five to seven years
Mazagon Dock Shipbuilders Ltd has signed a memorandum of understanding with National Shipbuilding and Heavy Industries Park-AP to act as anchor shipyard for a proposed greenfield facility at Dugarajapatnam in Andhra Pradesh, with MDL envisaging an investment of about INR 15,000 crore over five to seven years.
The investment is subject to required approvals and clearances, according to the announcement. The proposed yard has a design capacity of 1.2 million gross tonnes a year and is intended to build commercial vessels including tankers, bulk carriers, container ships and LNG carriers. The Andhra Pradesh government said the project could generate about 45,000 direct and indirect jobs.
The scale sits inside a larger state-led shipbuilding-and-port proposal. A techno-economic feasibility report cited by the Andhra Pradesh government estimates the shipbuilding and repair yard at INR 29,254 crore and the port component at INR 9,513 crore. On those figures, MDL's envisaged INR 15,000 crore represents about 51.3% of the estimated shipyard cost, or 38.7% of the combined INR 38,767 crore cluster estimate.
The project is beyond a paper proposal at one important point: Tirupati district has published land-acquisition notifications during 2026 for Dugarajapatnam port, shipbuilding and repair facilities in villages in Vakadu mandal. That establishes preparatory state action independently of the company's release, although it does not establish that MDL's own capital expenditure has been finally approved.
NSHIP-AP is a special-purpose vehicle involving the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority. The state said the maritime board would facilitate land, infrastructure and statutory clearances.
