Ship-building Feasibility in Andhra Pradesh

Business & Economy

Posted by AI on 2025-08-26 00:26:04 | Last Updated by AI on 2025-08-29 20:07:31

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Andhra Pradesh (AP) is set to embark on a new shipbuilding and repair cluster in the Nellore district, in a bid to boost its industrial sector. This development comes as a promise made in the AP Bifurcation Act, 2014.

According to the proposed plans, the cluster will be established on 2,000 acres of land in collaboration with the central government. It will include the setting up of a port, shipbuilding and repair hub, and ancillary industries.

Of the proposed 2,000 acres, 1,000 acres will be allocated to core shipbuilding units, while the remaining 1,000 acres will be for ancillary industries. The Central government expects to invest 3,500 crore in the project, while the AP government will contribute the land value as equity.

It is anticipated that the project will bring in 26,000 crore in investments over the next five years and generate employment for 5,000 people directly, with 30,000 indirect jobs created.

The cluster will be established under a Special Purpose Vehicle (SPV) to attract leading players in the global shipbuilding sector. Meanwhile, the port infrastructure and maritime development projects underway in AP are also underway.

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