VISAKHAPATNAM: The State government has approved the incorporation of Shipbuilding & Heavy Industries Park AP Limited (NSIHP-AP Ltd.) as a Special Purpose Vehicle (SPV) for developing shipbuilding, ship-repair and allied maritime infrastructure at Dugarajapatnam in Nellore.
The proposed company will be formed as a 50:50 joint venture between the AP Maritime Board and the Visakhapatnam Port Authority (VPA).
The initiative is being taken up under the Shipbuilding Financial Assistance Policy (SBFA) scheme of the Government of India.
According to officials, the project involves the development of a shipbuilding and repair cluster spread across about 2,000 acres at Dugarajapatnam, with an estimated investment of Rs 29,662 crore. The cluster is expected to include four dry docks, ship-lift facilities and supporting infrastructure required for shipbuilding and marine fabrication activities.
The proposed facility is planned with a shipbuilding capacity of about 1.2 million Gross Tonnage Per Annum (GTPA) and will support shipbuilding, ship repair and related industrial activities.
Officials said the cluster is expected to encourage the growth of ancillary industries such as ship component manufacturing, marine equipment supply and logistics services.
The project is also expected to attract ancillary investments ranging from Rs 8,000 crore to Rs 10,000 crore, apart from generating direct and indirect employment in the region.
Officials said the development of the cluster would contribute to strengthening the maritime industrial ecosystem in the State and support coastal industrial development.
“Andhra Pradesh has a coastline over 1000 km, and the project is expected to complement the State’s port-led development strategy. The selection of a strategic shipyard partner for developing the cluster will be undertaken in accordance with the guidelines of the SBFA scheme,” VPA officials noted.
VPA chairperson M Angamuthu played a key role in facilitating the joint venture with the Andhra Pradesh government for establishing the SPV.