The Centre has given in-principle approval to Odisha’s proposed ₹24,700 crore shipbuilding cluster in Kendrapara, marking a major step towards establishing a large integrated shipbuilding and ship-repair hub on the banks of the Mahanadi River.
The project is being proposed by National Shipbuilding and Heavy Industries Park Odisha Ltd (NSHIPOL) under the Shipbuilding Development Scheme (SbDS) of the Ministry of Ports, Shipping and Waterways.
Location and Purpose of Project
The cluster is planned on the northern bank of the Mahanadi, opposite the IFFCO plant in Paradip. It is intended to bring shipbuilding, ship repair and supporting heavy industries together within an integrated industrial ecosystem.
The original proposal envisaged:
- A dedicated waterfront of approximately 2–2.5 km.
- A land area of around 2,000–2,500 acres.
- One or more large shipyards.
- Combined annual shipbuilding capacity of approximately 1.2 million Gross Tonnes (GT).
The project will be implemented through a Special Purpose Vehicle (SPV) involving the Odisha Maritime Board (OMB) and Paradip Port Authority (PPA).
How the Approval Was Granted
NSHIPOL submitted its application on 30 July. After examining the proposal, the concerned authority granted in-principle approval based on the recommendations and directions emerging from the sixth meeting of the Inter-Ministerial Group for Shipbuilding (IMGB) under the National Shipbuilding Mission.
However, this is not the final project approval.
Before receiving final approval under the scheme, NSHIPOL must obtain the necessary statutory permissions, including:
- Environmental clearance
- Coastal Regulation Zone (CRZ) permission
It will then have to submit the proposal along with the Detailed Project Report (DPR), required statutory clearances and investment commitments within the prescribed timeline.
Why Paradip and Mahanadi Location Matter
The proposed location offers important logistical and industrial advantages. It has direct access to Paradip Port and is connected to Odisha’s mineral-rich and industrial hinterland. The region provides access to major raw materials such as: Coal, Steel and Other industrial inputs
It also benefits from an established maritime logistics network, making it suitable for a large-scale shipbuilding ecosystem.
The planned cluster is expected to support related industries such as:
- Engine manufacturing
- Steel fabrication
- Marine equipment production
- Other ancillary manufacturing
In addition, the project proposes common facilities, training centres and research and development infrastructure.
The Centre’s shipbuilding scheme aims to establish state-level clusters with shared infrastructure so that shipbuilders can become more competitive, attract private investment and generate employment opportunities.
Kendrapara’s Role in Odisha’s Shipbuilding Ambition
Odisha’s Economic Survey had earlier identified Kendrapara as a potential location for a national mega shipbuilding cluster.
The NITI Aayog’s economic plan for the Bhubaneswar–Cuttack–Puri–Paradip region also proposed using the Mahanadi riverine location as a major hub for shipbuilding and ship repair, catering to both large vessels and short-sea vessels.
The proposed long-term development of the hub could include:
- A design and innovation centre focusing on green-vessel technology.
- A skill-development academy.
- Facilities promoting green shipbuilding practices.
- Ancillary manufacturing units for engines, navigation systems and other marine equipment.