The Indian government's renewed focus on shipbuilding is revitalizing Dugarajapatnam in Andhra Pradesh's Tirupati district, which has been earmarked for a shipbuilding and port cluster. This initiative follows the earlier identification of the site for a major port under the Andhra Pradesh Reorganisation Act. The Union government has engaged RITES Ltd, a public sector railway company, to conduct a technical study for developing a maritime cluster that includes a port, shipbuilding facilities, and related industries.
The Andhra Pradesh government plans to integrate this maritime cluster with the Union's industrial corridors and upcoming shipbuilding policies. Additionally, Mulapeta in Srikakulam district and Ramayapatnam in Prakasam district have been identified as potential sites for similar developments.
Originally, in 2013, the Cabinet Committee on Economic Affairs approved the establishment of a new port at Dugarajapatnam to enhance port capacity. However, a 2018 assessment by various government bodies indicated that the project might not be viable due to competition from nearby ports like Krishnapatnam, Ennore, and Chennai.