Bhubaneswar, Sept. 1 (UDN): Odisha’s ambitious ₹24,700-crore shipbuilding cluster in Kendrapara has crossed a significant milestone after receiving in-principle approval from the Centre under the Ministry of Ports, Shipping and Waterways’ Shipbuilding Development Scheme (SbDS).
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The approval clears the way for the National Shipbuilding and Heavy Industries Park Odisha Ltd (NSHIPOL) to move ahead with the next phase of planning for the integrated maritime project, which is proposed along the northern bank of the Mahanadi River, opposite the IFFCO plant in Paradip.
Mega maritime hub planned
The project envisions the development of one or more large shipyards with a combined annual shipbuilding capacity of around 1.2 million gross tonnes (GT). Spread across an estimated 2,000-2,500 acres, the cluster is expected to feature a dedicated waterfront stretching about 2-2.5 km.
The project will be implemented through a Special Purpose Vehicle (SPV) involving the Odisha Maritime Board (OMB) and the Paradip Port Authority (PPA).
Strategic location to boost industry
Its proximity to Paradip Port and Odisha’s mineral-rich industrial hinterland is expected to provide easy access to steel, coal and other key raw materials, strengthening the project’s competitiveness.
Besides shipbuilding and ship repair facilities, the proposed ecosystem includes plans for engine manufacturing, steel fabrication, marine equipment production, common infrastructure, training centres, and research and development facilities.
More approvals still required
While the Centre’s decision marks an important step forward, it does not constitute final approval. NSHIPOL must now obtain statutory permissions, including environmental clearance and Coastal Regulation Zone (CRZ) approvals, before submitting a detailed project report and investment commitments for final clearance under the scheme.
Part of a larger maritime vision
Kendrapara has already been identified in Odisha’s Economic Survey as the site for a national mega shipbuilding cluster. The proposed hub also aligns with NITI Aayog’s development vision for the Bhubaneswar-Cuttack-Puri-Paradip region, which envisages the Mahanadi riverfront as a major centre for shipbuilding, ship repair and green maritime manufacturing.
The long-term plan also includes a green-vessel design and innovation centre, a maritime skill development academy and ancillary industries producing navigation systems, engines and other marine equipment, positioning Odisha to emerge as a stronger player in India’s growing shipbuilding sector.