Hindustan Shipyard Proposes Greenfield Facility in Andhra Pradesh Across Machilipatnam or Dugarajapatnam

Visakhapatnam-based Hindustan Shipyard Limited (HSL) has initiated formal consultations with the Andhra Pradesh government to secure coastal land for a major greenfield shipyard expansion.

Following high-level discussions between Chief Minister Nara Chandrababu Naidu and HSL Chairman and Managing Director Rear Admiral Chandrasekharan Raghuram, the defence public sector undertaking identified Machilipatnam and Dugarajapatnam as the two candidate locations for the proposed facility. The move advances a preliminary Memorandum of Understanding signed between HSL and the Andhra Pradesh Maritime Board in late 2025 to evaluate strategic shipbuilding corridors along the state's coastline.

The project is structured to build an integrated maritime industrial ecosystem rather than a standalone dockyard, with HSL projecting approximately 18 lakh man-days of direct and indirect employment. The initiative is also estimated to generate over ₹2,000 crore in business opportunities for regional micro, small, and medium enterprises (MSMEs). This ancillary network will span core manufacturing and support trades, including structural steel fabrication, specialized welding, precision machining, marine electrical systems, industrial piping, protective painting, and vessel maintenance logistics.

Aligned with the central government's Aatmanirbhar Bharat roadmap and the Maritime Amrit Kaal Vision 2047, the new facility is designed to expand domestic capacity for constructing large commercial vessels, offshore platforms, and advanced defence assets. HSL clarified that the greenfield development serves strictly as a long-term capacity expansion and does not involve relocating or curtailing its primary Visakhapatnam operations. Both coastal locations remain under technical evaluation, with final site selection, land allotment, and investment approvals awaiting formal government clearances.