Amaravati: In a significant development for Andhra Pradesh’s maritime ambitions, state-owned shipbuilding giant Mazagon Dock Shipbuilders Limited (MDL) has expressed interest in investing more than ₹29,000 crore in a mega shipbuilding cluster in the state after uncertainty emerged over its proposed greenfield project in Tamil Nadu.
MDL, India’s premier defence and commercial shipbuilder, had earlier signed a memorandum of understanding with the Tamil Nadu government in September 2025 for a 1,050-acre greenfield shipyard at Thoothukudi. The company had publicly committed an investment of ₹15,000-18,000 crore and planned to develop facilities capable of building Very Large Crude Carriers (VLCCs) of up to 3,00,000 DWT.
However, the company is now exploring opportunities in Andhra Pradesh after reportedly failing to secure the anchor role in the strategically important Thoothukudi shipbuilding cluster. MDL is understood to be keen on becoming the anchor investor in Andhra Pradesh’s proposed mega shipbuilding hub and is expected to send a team shortly to conduct a feasibility study.
The proposed Andhra Pradesh cluster is planned with a shipbuilding capacity of 1.2 million tonnes, aligning with the Centre’s Maritime Amrit Kaal Vision 2047, which aims to significantly expand India’s shipbuilding capabilities and reduce dependence on foreign shipyards.
The development comes amid growing questions over the selection process adopted for the Thoothukudi project. Industry observers have pointed to concerns that a foreign shipbuilding company was brought on board before the formal notification of the Union government’s Shipbuilding Development Scheme guidelines and before the special purpose vehicle responsible for implementing the project was incorporated.
For Andhra Pradesh, MDL’s interest represents a major opportunity. A ₹29,000-crore investment by one of India’s leading shipbuilders could strengthen the state’s maritime ecosystem, generate thousands of jobs, attract ancillary industries and position Andhra Pradesh as a key shipbuilding destination on India’s eastern coast.