The project, subject to requisite approvals and clearances, is expected to generate direct and indirect employment for around 45,000 people in the state. MDL has been identified as the anchor shipyard for the proposed shipbuilding cluster.
The MoU was signed in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu by MDL Chairman and Managing Director Capt. Jagmohan (Retd.) and NSHIP-AP Managing Director Praveen Adhithya C.V.
The proposed shipyard will have a design capacity of 1.2 million gross tonnes per annum, with scope for expansion based on market requirements. It will cater to commercial vessels including tankers, bulk carriers, container ships, liquefied natural gas (LNG) carriers and other large specialised vessels.
Andhra Pradesh plans ₹29,254 crore shipbuilding yard
The Andhra Pradesh government is planning a broader Shipbuilding-cum-Port Cluster at Dugarajapatnam. According to the Techno-Economic Feasibility Report, the shipbuilding and ship repair yard is estimated to cost around ₹29,254 crore, while the proposed port is estimated at ₹9,513 crore. The port is proposed to be developed by the Government of India.
The cluster is being developed under the Government of India’s Shipbuilding Development Scheme (SbDS). NSHIP-AP, a special purpose vehicle formed jointly by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, has identified MDL as the anchor shipyard.
Naidu said Andhra Pradesh aims to play a key role in India’s ambition to become one of the world’s top five shipbuilding nations by 2047.
“The development of the shipbuilding cluster at Dugarajapatnam, with MDL as the Anchor Shipyard, will position Andhra Pradesh as a major shipbuilding hub and attract a strong ecosystem of ancillary industries and investments to the State,” he said.
MDL said the project would mark a step towards its diversification into large-scale commercial shipbuilding, while also supporting the development of an ancillary and marine engineering ecosystem.
Capt. Jagmohan said Dugarajapatnam offers the scale and maritime potential required for a globally competitive shipyard and that MDL intends to develop a facility serving both domestic and international markets.
The Dugarajapatnam project is aligned with the government’s Maritime Amrit Kaal Vision 2047 and the Shipbuilding Development Scheme.
MDL’s order book, submarine pipeline
The Andhra Pradesh project comes as MDL is also expecting a significant pipeline of naval orders.
Ruchir Agrawal, Director-Finance at MDL, recently told CNBC-TV18 that the company’s order book could cross ₹1 lakh crore in FY27 if anticipated submarine and naval vessel orders come through. Its current order book stands at under ₹18,000 crore.
Agrawal said the company expects 15-17% revenue growth in the current financial year.
The P-75I submarine programme, being executed with Germany’s ThyssenKrupp Marine Systems (TKMS), remains one of the key potential orders for MDL. The company expects the government to award the order during the current financial year, although it has not provided a firm timeline.
Shares of Mazagon Dock ended nearly 2% higher at ₹2,252 on Friday. The stock has, however, declined more than 9% since the beginning of this year and about 25% over the trailing 12-month period.
