In a significant step towards bolstering the maritime sector in the state, the government of Andhra Pradesh has given its nod for the establishment of Ship Building and Heavy Industries Park Andhra Pradesh Limited (NSIHP-AP Ltd.) as a special purpose vehicle (SPV) for the development of a world-class shipbuilding, ship-repair, and allied maritime industrial infrastructure at Dugarajapatnam.
The strategic move is expected to position Andhra Pradesh as a leading hub for shipbuilding and heavy industries in India, creating numerous employment opportunities and accelerating industrial growth. The project will be carried out through a 50:50 special purpose vehicle between the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, according to VPA deputy chairperson Roshini Aparanji Korati.
The initiative falls under the Shipbuilding Financial Assistance Policy (SBFA) Scheme of the central government, and a strategic shipyard partner will be chosen for the development of the cluster in accordance with the scheme guidelines. The Dugarajapatnam Shipbuilding Cluster is anticipated to play a crucial role in enhancing India’s shipbuilding and ship-repair ecosystem, fostering the growth of ancillary industries, generating large-scale direct and indirect employment, and promoting coastal industrialization in southern India.
For Andhra Pradesh, this project will solidify the state’s standing as a key maritime manufacturing hub, complementing its port-led development strategy. With an estimated investment of Rs.29,662 crore, the Dugarajapatnam Shipbuilding and Repair Cluster is poised to make a substantial contribution to the state’s Gross State Domestic Product (GSDP). Spanning over 2,000 acres in Nellore district and leveraging Andhra Pradesh’s 974-km-long coastline, the project aims to reduce import dependency.
