Vijayawada: With Prime Minister Narendra Modi laying the foundation stone for shipbuilding and maritime projects in Bhavnagar, Gujarat, under the ‘Samudra Se Samiriddhi’ initiative on Saturday, Andhra Pradesh’s maritime infrastructure push has gained traction.

The Samudra se Samiriddhi initiative seeks to transform the maritime sector. This includes projects worth Rs 7,670 crore under the Ministry of Ports, Shipping and Waterways to modernize ports, enhance shipbuilding and strengthen inland waterways. These transformative ventures will not only unlock new opportunities for trade, investment and sustainability but also serve as a cornerstone in realising the Maritime Amrit Kaal Vision 2047, positioning India as a global maritime leader.

Amid reports that the Centre will soon unveil a multi-thousand-crore package for domestic shipbuilding, the Rs 3,500 crore shipbuilding and repair cluster at Dugarajapatnam now appears set to take off. The state government has already signed an MoU for the project and is preparing to form a Special Purpose Vehicle (SPV) to invite global players for its execution.

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has earmarked 2,000 acres for the cluster, including 1,000 acres for core shipbuilding units and another 1,000 acres for a greenfield port, four dry docks, outfitting jetties, a ship lift facility, and allied industries, including steel, fabrication, equipment supply, and R&D centres. The Visakhapatnam Port Trust (VPT) has been tasked with developing the greenfield port.

Over time, the project is expected to draw investments totaling Rs 26,000 crore, generate 5,000 direct jobs and around 25,000 indirect jobs in logistics, repair yards, fabrication, and related services.

Once fully operational, the cluster could contribute Rs 12,000 to 15,000 crore annually to Andhra Pradesh’s GSDP.

The Dugarajapatnam facility will handle both domestic and international cargo with a projected capacity of 60 to 70 million tonnes per annum (MTPA) within a decade. This is expected to cut logistics costs, boost the coastal economy, and align with India’s Blue Economy vision.

Investments in ancillary units worth Rs 8,000 to 10,000 crore from ship component makers, marine equipment suppliers, and logistics players are also anticipated, creating a strong multiplier effect across the State’s industrial ecosystem. Andhra Pradesh, with its 974-km coastline -- second longest in India -- is positioning itself as a major hub for shipbuilding in South Asia, reducing dependence on imported large vessels and enhancing export capacity.