Odisha Set to Build Cargo Ships as Rs 24,700 Crore Mega Shipbuilding Hub Gets Approval

Odisha is set to enter a new phase of maritime industrial development with the approval of a Rs 24,700 crore mega shipbuilding project in Kendrapara district. The proposed facility will become the state’s first major integrated shipbuilding cluster, marking a significant expansion of its maritime and heavy-industry capabilities.
The project has received approval under the Union Ministry of Ports, Shipping and Waterways’ Shipbuilding Development Scheme. Odisha Industries Minister Sampad Chandra Swain announced the approval.

The proposed shipbuilding hub will come up along the northern bank of the Mahanadi River, near the IFFCO plant in Paradip. It will be developed through a Special Purpose Vehicle with the joint participation of the Odisha Maritime Board and the Paradip Port Authority.
The cluster is planned as an integrated industrial ecosystem covering shipbuilding, ship repair and related heavy industries. The original plan envisages around 2,000 to 2,500 acres of land and a waterfront stretching nearly 2 to 2.5 kilometres.

One or more large shipbuilding facilities are expected to be established within the cluster, with a combined annual production capacity of around 12 lakh gross tonnes.
Apart from cargo ship manufacturing, the project is expected to attract industries involved in engine production, steel processing and marine equipment. Research and development facilities, specialised training centres and common infrastructure will also be developed as part of the industrial ecosystem.
The mega project is expected to generate large-scale employment opportunities and strengthen Odisha’s maritime sector. With its strategic location near Paradip Port, the state also aims to emerge as a major centre for shipbuilding and maritime trade in India.