Mega shipbuilding cluster worth Rs 24,700, 00,00,000 to come up in Odisha’s Kendrapara

In a major boost to India’s maritime ambitions, the Paradip Port Authority (PPA) and Odisha Maritime Board (OMB) have signed a Memorandum of Understanding (MoU) to establish a large-scale shipbuilding cluster in Odisha. 

The agreement was signed on September 19, 2025, in line with India’s Maritime Amrit Kaal Vision 2047, which seeks to position the country among the top five shipbuilding nations globally.

The proposed cluster will be situated on the Mahanadi riverbank in Kendrapara district, opposite the IFFCO plant in Paradip, with an estimated investment of Rs 24,700 crore. The project aims to create a fully integrated shipbuilding ecosystem, featuring one or more large shipyards with a combined annual capacity of 1.0 to 1.2 million Gross Tonnage (GT).

The cluster will include a dedicated waterfront of 2.0–2.5 km and a land area of 2,000–2,500 acres. Ancillary industries such as engine manufacturing, steel fabrication, and equipment suppliers will support the shipbuilding process. Additionally, common infrastructure, including administrative offices, training centres, and research and development facilities, will be established.

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The PPA and OMB will jointly develop the land-side and river-side infrastructure to expedite the project. This cluster-based model is designed to attract investments, improve competitiveness, and significantly enhance India’s commercial shipbuilding capacity.

In a related development, Paradip Port Authority, Odisha Maritime Board, and Sagarmala Finance Corporation have also signed a landmark tripartite agreement for a new satellite port, further strengthening the region’s maritime ecosystem.