State-owned Mazagon Dock Shipbuilders is likely to be the anchor investor in the proposed mega shipbuilding facility at Dugarajapatnam in Tirupati district of Andhra Pradesh,According to a senior government official, representatives of the Mumbai-based company are expected to visit Dugarajapatnam shortly to assess the site and evaluate the feasibility of joining the project as an anchor investor.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.The proposed shipyard, estimated to involve an investment of about ₹29,000 crore, was promised by the Centre as part of commitments made to Andhra Pradesh. The State government is expected to invest around ₹2,000 crore in creating supporting infrastructure for the project.The State’s Infrastructure and Investments Department has been scouting for an anchor partner to lead the development of the shipyard. Though there has been some interest expressed in the project by the global shipbuilding majors, it is learnt that the State government is in favour of roping in the Indian player rather than a foreign player, considering the strategic nature of the project and the expertise available within the country, the official said. South Korea’s HD Hyundai, Samsung and Japan’s Imabari are among the top global players in the shipbuilding industry and some of them have interest in shipbuilding clusters coming up in other parts of the coutnry.A preliminary round of discussions have been held with Mazagon Dock Shipbuilders and a field-level inspection by a Mazagon Dock team is expected soon. The visit will focus on assessing the location, infrastructure requirements and development potential of the proposed shipbuilding facility.The project is expected to strengthen Andhra Pradesh’s maritime manufacturing ecosystem and position Dugarajapatnam as a major shipbuilding hub on the country’s eastern coast.Published on June 5, 2026