State-run defense public sector undertaking Mazagon Dock Shipbuilders Limited (MDL) announced a landmark memorandum of understanding (MoU) with the National Shipbuilding and Heavy Industries Park-AP to establish a major greenfield shipyard at Dugarajapatnam in Andhra Pradesh. Under the strategic preliminary agreement, the premier naval shipbuilder plans to invest approximately ₹15,000 crore in phased capital expenditures over the next five to seven years to build advanced commercial and defense shipbuilding infrastructure along the eastern coastline. The ambitious maritime expansion project is designed to enhance India's domestic vessel construction capacity, accommodate larger deep-draft commercial carriers, and support heavy naval fleet manufacturing requirements. Industry analysts and defense sector strategists highlight that establishing a major shipbuilding hub in Andhra Pradesh aligns directly with national maritime vision targets, reducing dependence on foreign shipyards while creating thousands of skilled technical jobs across regional supply chains. The company's massive capital commitment reinforces the growing role of public sector defense enterprises in driving domestic industrial infrastructure, boosting export capabilities, and solidifying India's position as a prominent hub in global maritime manufacturing.Navratna Defence Public Sector Undertaking Mazagon Dock Shipbuilders Limited (MDL) signed a Memorandum of Understanding (MoU) with the National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) to set up a state-of-the-art greenfield shipyard at Dugarajapatnam in Tirupati district, Andhra Pradesh. Signed in Vijayawada in the presence of Chief Minister N. Chandrababu Naidu and MDL Chairman and Managing Director Capt. Jagmohan (Retd.), the agreement entails an investment of approximately ₹15,000 crore over a five-to-seven-year timeline, pending regulatory and environmental clearances.The proposed facility features an initial design capacity of 1.2 million gross tonnes (GT) per year, with built-in provisions for future expansion based on market demand. Designed to pivot MDL beyond its core naval defence and submarine manufacturing operations, the Dugarajapatnam yard will focus heavily on large commercial vessels—including crude oil tankers, bulk carriers, container ships, and liquified natural gas (LNG) carriers. The initiative aligns directly with the Union Government's Shipbuilding Development Scheme (SbDS) aimed at elevating India into the world's top five shipbuilding nations by 2047.The shipyard constitutes the core anchor of a broader ₹38,767 crore maritime cluster. According to the project's Techno-Economic Feasibility Report, the shipbuilding and repair infrastructure is valued at ₹29,254 crore, complemented by a dedicated ₹9,513 crore commercial port proposed to be developed by the Central Government. Operating through a 3,488-acre footprint with 2.1 kilometers of prime waterfront, the cluster is set to catalyze downstream manufacturing, marine engineering, logistics, and heavy industrial supply chains across coastal Andhra Pradesh.