Andhra Pradesh Plans Rs 30,000 Crore Shipbuilding Cluster and Four Greenfield Ports

Shipbuilding Cluster plan Andhra Pradesh
Andhra Pradesh is aiming to emerge as a global maritime and logistics hub, with investments in port infrastructure, shipbuilding and ship repair, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said at the 31st CII Partnership Summit 2026 in Visakhapatnam.

Addressing the summit, Sonowal highlighted the state's approximately 1,053-km coastline along the Bay of Bengal, access to international shipping routes and proximity to major Asian manufacturing and trading economies. He said these advantages could position Andhra Pradesh as India's maritime gateway to ASEAN, East Asia and the wider Indo-Pacific region.

The Minister said the Centre would work with the Andhra Pradesh government, industry and global investors to accelerate the state's maritime development. He also highlighted the support of Prime Minister Narendra Modi and Chief Minister N. Chandrababu Naidu in advancing the state's maritime ambitions.

Referring to the state's potential, Sonowal said Andhra Pradesh had an opportunity to become India's maritime gateway to the East, drawing a parallel with Hyderabad's emergence as a technology hub.

He also referred to the foundation stone laying for projects worth more than Rs 560 crore at Visakhapatnam Port on November 11. The projects are aimed at augmenting port capacity, improving ease of doing business and generating employment.

Andhra Pradesh's port infrastructure is also set to expand with four greenfield ports under construction at Mulapeta, Machilipatnam, Ramayapatnam and Kakinada SEZ. These projects are expected to increase cargo-handling capacity and support industrial development.

Shipbuilding and ship repair are among the other areas identified for investment. Sonowal highlighted the proposed greenfield shipbuilding cluster at Dugarajapatnam, which has received in-principle approval under the National Shipbuilding Mission. The project envisages an investment of approximately Rs 30,000 crore and an annual capacity of 1.2 million gross tonnes.

A Centre-State special purpose vehicle involving the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority has been formed for the project. The Minister invited global shipbuilders, technology companies, equipment manufacturers and maritime investors to explore investment opportunities in the state.

Sonowal said the Centre had allocated Rs 70,000 crore in financing support for shipbuilding and other maritime activities, as part of its efforts to make India one of the world's top five shipbuilding nations.

He also outlined the role of national initiatives, including Sagarmala, Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, in supporting the development of India's maritime economy. The latter envisages investments of Rs 80 lakh crore.

Other initiatives highlighted by the Minister included the Rs 10,000 crore Container Manufacturing Scheme to promote domestic container production and the proposed Rs 10,000 crore Coastal Cargo Promotion Scheme to increase coastal shipping. He also referred to the Rs 80,000 crore deep-draft, all-weather container port project at Vadhavan in Maharashtra.

According to Sonowal, the four Global Maritime Investment Summits held under the Prime Minister's leadership have attracted investments of approximately Rs 25 lakh crore in the maritime sector.

Emphasising technology adoption, the Minister said artificial intelligence, predictive analytics, automation and digital logistics platforms would play an important role in improving port efficiency and competitiveness. He called for collaboration between the Centre, state government, industry and international investors to advance port development, shipbuilding, ship repair, cruise tourism, coastal shipping and maritime industrialisation.

Sonowal outlined three priorities for Andhra Pradesh: expanding port-led development, establishing a globally competitive shipbuilding and ship repair ecosystem, and strengthening its position as India's eastern maritime gateway to ASEAN, East Asia and the Indo-Pacific.

The state has an established maritime presence through Visakhapatnam, Gangavaram and Krishnapatnam ports. Visakhapatnam Port handled a record 91.17 million tonnes of cargo in FY2025-26, registering growth of approximately 10% over the previous year. It has recorded consecutive annual growth since FY2021-22.

The 31st CII Partnership Summit 2026 is being held in Visakhapatnam on November 12-13 under the theme 'Navigating the New World Order: Trade, Technology, Trust, Thought Leadership'. The summit brings together government representatives, industry leaders and international participants to discuss trade, investment, technology and global partnerships.