The National Shipbuilding and Heavy Industries Park Odisha Ltd (NSHIPOL) has received in-principle approval for its proposed ₹24,700 crore shipbuilding cluster in Kendrapara, according to reports from Business Standard. This marks the first major step towards transforming Odisha's maritime legacy into a modern shipbuilding and heavy industries ecosystem. The approval was granted under the Shipbuilding Development Scheme (SbDS) of the Ministry of Ports, Shipping and Waterways, with NSHIPOL having submitted its application on 30 July. The project represents a significant investment in India's maritime infrastructure development.
The proposed large-scale shipbuilding cluster will be established along the northern bank of the Mahanadi river, opposite the IFFCO plant in Paradip, as reported by Business Standard. The project includes plans for one or more large shipyards with a combined shipbuilding capacity of around 1.2 million gross tonnes (GT) per year. The original plan envisages a dedicated waterfront of about 2-2.5 km and a land area of 2,000-2,500 acres. The cluster is strategically positioned close to Paradip Port and Odisha's mineral and industrial hinterland, providing access to steel, coal and other raw materials. This strategic location positions the cluster to serve both domestic and international maritime needs.
The proposed ecosystem will include ancillary industries such as engine manufacturing, steel fabrication and marine equipment suppliers, along with common facilities, training centres and research and development infrastructure, according to Business Standard. The project will be developed through a special purpose vehicle (SPV) involving the Odisha Maritime Board (OMB) and Paradip Port Authority (PPA). The cluster is expected to create an integrated ecosystem for shipbuilding, ship repair and associated heavy industries. The comprehensive approach ensures that the shipbuilding cluster will not operate in isolation but will be part of a complete maritime ecosystem.
P L Haranadh, chairperson of Paradip Port Authority, termed the in-principle approval an important milestone in Odisha's maritime development journey, as reported by Business Standard. NSHIPOL will now prepare a detailed project report covering shipyard infrastructure requirements, vessel specifications, capital expenditure, dredging and breakwater requirements, and the financial model. The company must also secure statutory approvals including environmental clearance and Coastal Regulation Zone (CRZ) permissions before final approval. The Centre's Shipbuilding Development Scheme envisages state-level clusters with shared infrastructure to improve competitiveness and attract private investment.
