The Andhra Pradesh government has approved a plan to develop a greenfield port and a mega shipbuilding cluster at Dugarajapatnam in Tirupati district, marking a major step in strengthening India’s maritime manufacturing base.

The project will be executed through a 50:50 special purpose vehicle (SPV) between the AP Maritime Board and the Centre-owned Visakhapatnam Port Authority under the Shipbuilding Development Scheme. The state has permitted the AP Maritime Board to acquire 2,000 acres of land and transfer it to the SPV as equity, while also authorising the selection of a shipyard partner. Andhra Pradesh has become the first state to clear such a mega greenfield shipbuilding cluster following the Centre’s recent guidelines. The cluster will be developed as “plug-and-play infrastructure” with a two-km waterfront and facilities for large shipyards and ancillary industries.

Each cluster is expected to have a capacity of about 1.2 million gross tonnage per year. The Centre will provide full capital assistance for eligible infrastructure, while the SPV will handle planning and development.