Goa Shipyard Limited (GSL), a Defence Public Sector Undertaking (DPSU), is set to invest ₹1,500 crore in establishing a new greenfield shipbuilding facility in Andhra Pradesh.

The company signed a memorandum of understanding (MoU) with the state government under the newly launched Maritime Cluster Policy, marking a major milestone in Andhra’s drive to develop its maritime industrial base.

This project marks GSL’s first major expansion outside its home base of Goa in more than five decades of operation. The planned facility will help the state-owned shipyard scale up production capacity and cater to an expanding order book from the Indian Navy, Coast Guard, as well as export customers in Southeast Asia.

Commodore Adikesh Vasudevan, General Manager (Projects) at GSL, noted that the company had been assessing east coast options for some time. He explained that growing demand and strategic geographic access to regional export markets were key considerations behind the move.

“This is the first time Goa Shipyard will step out of Goa. The expansion will assist in supplying ships to Southeast Asian countries,” Vasudevan told The Economic Times.

The east coast location also offers logistical and climatic advantages. At present, GSL’s operations in Goa face seasonal suspensions during the southwest monsoon, which disrupts open‑air shipbuilding. By situating a new facility on the eastern seaboard, GSL will be able to maintain year‑round production, as the monsoon cycles affect the two coasts at different times of the year.

GSL initiated discussions with the Andhra Pradesh government around eight months ago and has sought approximately 200 acres of industrial land at Machilipatnam for the project. Site negotiations are still under way, but the company has expressed confidence in concluding the formal allotment soon.

The state’s proactive maritime policy played a key role in drawing GSL’s investment. According to Vasudevan, Andhra Pradesh stood out among eastern coastal states because it already had a clearly articulated framework for maritime cluster development.

“We received an invitation from the state government to explore this opportunity. Their policy clarity and readiness to support shipbuilding infrastructure made Andhra Pradesh the natural choice,” he said.

The proposed facility will build vessels up to 120 metres in length and capable of handling draughts exceeding six metres. Such capacity will enable the shipyard to construct a wide range of naval and commercial vessels, further strengthening India’s indigenous shipbuilding ecosystem.

The MoU was signed during the two‑day Confederation of Indian Industry (CII) Partnership Summit held in Visakhapatnam, which attracted leading stakeholders from India’s maritime and defence manufacturing sectors.

The Andhra facility aligns with GSL’s long‑term strategic objective to expand its footprint across both coasts, enhance naval export potential, and support India’s “Make in India” and “Global Shipbuilding Hub” ambitions.

Agencies