Odisha to Get Rs 247 Bn Shipbuilding Cluster in Kendrapara

27 Sep 2025 CW Team

The Paradip Port Authority (PPA) and the Odisha Maritime Board (OMB) have signed an MoU to develop a national shipbuilding cluster in Kendrapara district on the northern bank of the Mahanadi river. The project, costing an estimated Rs 247 billion, is part of India’s Maritime Amrit Kaal Vision-2047, which aims to position the country among the top five global shipbuilding nations.

The proposed cluster will be located opposite the IFFCO plant in Paradip and is planned as a fully integrated ecosystem. It will feature one or more shipyards with a combined capacity of 1–1.2 million gross tonnage (GT) per annum.

Key features include:

A dedicated waterfront spanning 2.0–2.5 km
2,000–2,500 acres of land for facilities
Ancillary industries such as engine manufacturing, steel fabrication, and equipment suppliers
Common infrastructure including administrative offices, training centres, and R&D facilities

“The shipbuilding cluster will significantly boost the state’s maritime industry and contribute to economic growth. It will create training and skill development opportunities for the local workforce, preparing them for jobs in the maritime sector,” said Bibhuti Bhusan Jena, Odisha’s Commerce and Transport Minister.

The PPA and OMB will jointly develop landside and riverside infrastructure to fast-track the initiative. The cluster model is expected to attract investments, enhance competitiveness, and expand India’s commercial shipbuilding capacity sustainably.

In a parallel development, the PPA, OMB, and Sagarmala Finance Corporation signed a tripartite agreement to establish a new all-weather greenfield satellite port at Bahuda Muhana in Ganjam district. This Rs 215 billion project will handle up to 150 million tonnes of cargo annually, with the PPA leading the venture by leveraging its port development expertise.

News source: The New Indian Express

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