APMB gets nod to set up Greenfield port, shipbuilding cluster in Dugarajapatnam
SPV to be formed, exercise to be launched to acquire 2,000 acres at Dugarajapatnam
image for illustrative purpose
Amaravati: In a significant development during the New Year, the Infrastructure & Investment Department of Andhra Pradesh has permitted the AP Maritime Board (APMB) to set up a greenfield port and shipbuilding cluster at Dugarajapatnam in Tirupati district under the Shipbuilding Development Scheme (SbDS) of Ministry of Ports, Shipping and Waterways (MoPSW).
Vide GO Ms. No 2 dated January2, 2026, the Infrastructure & Investment (Ports) Special Chief Secretary M V Krishna Babu stated that a MoU with the APMB and Visakhapatnam Port Authority (VPA) was signed on September 19, 2025 for the project.The total investment envisaged is to the tune of Rs29,662 crore with huge employment potential, a senior official of VPA told Bizz Buzz. A tripartite agreement on the project was signed in Mumbai on October 30 during the India Maritime Week.
Earlier, the Secretary, MoPSW informed that Centre has set a bold target under the Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047, to transform India into one of the world’s top five shipbuilding nations by 2047, with an envisaged shipbuilding output of 4.5 million gross tonnage (GT) per year from the current 0.01 million GT/year.
Further, in order to track and accelerate the development of "The National Mega Shipbuilding Cluster, Andhra Pradesh," including the creation of an SPV between the MoPSW and the Andhra Pradesh Government.
The MoPSW will extend its support to the said SPV through its entities in the State such as Visakhapatnam Port Authority (VPA). APMB has made a MoU with VPA to establish a National Mega Shipbuilding Cluster at Dugarajapatnam.
Consequent upon this, the CEO of APMB sought permission from the government for taking necessary action for establishment of green field port and National Mega Shipbuilding Cluster at Dugarajapatnam and approval to form a 50 - 50 per cent SPV with the VPA, and complete the land acquisition of 2,000 acres for the project duly mobilising the resources in this regard. APMB will transfer the lands into the SPV as equity of the State Government under the SbDS scheme of the MoPSW.
The GO staterd after careful examination of the proposal, the State Government accorded permission to the APMB for taking necessary action for establishment of Greenfield Port and Ship Building Cluster.
The project moots to establish a greenfield port and National Mega ShipBuilding Cluster with an acnhor shipyard having of capacity of 0.5 million Gross Tonnage (GT) per annum. This is to be achieved within maximum period of 10 years from the date of commissioning of the shipyard. The TEFR study has already been done by the RITES, duly coordinated by APMB and VPA.
