State clears $3.5 bn mega shipbuilding SPV
Amaravati: The state government approved the incorporation of National Shipbuilding and Heavy Industries Park Andhra Pradesh Limited (NSHIP-AP Ltd.) as a Special Purpose Vehicle (SPV) to anchor a Rs 29,253 crore greenfield port and national mega shipbuilding cluster at Dugarajapatnam in Tirupati district.
The entity will be established under the Companies Act, 2013 as a 50:50 joint venture between the Andhra Pradesh Maritime Board (APMB) and the Visakhapatnam Port Authority (VPA), representing the Government of India.
The project is positioned as India’s first National Mega Shipbuilding Cluster and forms part of the Centre’s broader industrial strategy under Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047. These national roadmaps aim to scale India’s shipbuilding output from an estimated 0.01 million gross tonnage (GT) per annum to 4.5 million GT annually, with the goal of placing India among the world’s top five shipbuilding nations by 2047. Spread across 2,000 acres, the Dugarajapatnam cluster is designed to deliver a capacity of approximately 1.2 million GT per annum under the Shipbuilding Development Scheme (SbDS). The project envisages development of an anchor shipyard with 0.5 million GT annual capacity within 10 years of commissioning, alongside ship-repair yards, heavy engineering facilities, dry docks, ship lifts and outfitting berths.
NSHIP-AP Ltd. will develop core marine and industrial infrastructure, including dredging works, waterfront facilities, internal logistics systems and utilities. The SPV will also coordinate port operations, allot land to shipyards and ancillary units, and implement projects through PPP, concession and lease models. The State has empowered APMB to identify and select a development partner for the anchor shipyard. The board will comprise senior representatives from both governments, including the chairperson of VPA and senior State officials from infrastructure and industry departments.
Officials said the long-delayed project could significantly enhance India’s domestic shipbuilding ecosystem, reduce import dependence, attract foreign investment and generate large-scale employment. For Andhra Pradesh, the cluster is expected to position the State as a strategic maritime manufacturing hub on India’s east coast.
