The Andhra Pradesh government is in the process of roping in a global major as an anchor investor for ₹29,000-crore mega shipbuilding cluster coming up at Dugarajapatnam in Tirupati district of Andhra Pradesh.
With a 1,053-km-long coastline, Andhra Pradesh is betting big on developing the maritime economy and is now competing with other States in attracting global anchor investors. South Korea’s HD Hyundai, Samsung and Japan’s Imabari are top global players in the shipbuilding industry. An announcement on the anchor investor is likely to be made soon.
A special purpose vehicle (SPV) has already been formed by the State government and Visakhapatnam Port Authority (VPA) representing the Centre for the mega shipbuilding cluster with a capacity of 1.2 million tonnes. The total investment has been pegged at ₹29,253 crore.
While the government will take care of land and marine infrastructure development worth ₹5,289 crore, the anchor investor will develop the core shipbuilding cluster with an investment of ₹23,964 crore, MT Krishna Babu, Special Chief Secretary, Infrastructure and Investments, Andhra Pradesh Government, told businessline.
The proposed cluster, with an estimated investment of about ₹29,253 crore, seeks to create a globally competitive commercial shipbuilding hub and develop an integrated maritime ecosystem, the official said.
According to Abhishek Kumar, Chief Executive Officer, Andhra Pradesh Maritime Board (APMB), the process of acquiring 2,170 acres has already commenced. A major extent of this land is in Tirupati while a small portion of it will extend into Nellore district. The preparation of a DPR is also underway.
The establishment of a mega shipbuilding cluster is part of the efforts to position Andhra Pradesh as a hub for global shipbuilding, aligning with Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047. With multiple fishing harbours, shipyards, and a strong industrial ecosystem, the State is looking at driving more investments.
Published on May 22, 2026