Odisha’s ambitious Rs 24,700 crore shipbuilding cluster in Kendrapara has received in-principle approval from the Centre under the Shipbuilding Development Scheme.
“Along with shipbuilding and repair, this will drive the development of ancillary industries such as steel, ship engines, and marine equipment, creating vast opportunities for new investments and employment. This project will further strengthen efforts to position Odisha as a leading maritime industrial hub in the country,” CM Mohan Charan Majhi said, welcoming the development.
The National Shipbuilding and Heavy Industries Park Odisha Ltd (NSHIPOL) secured the nod following recommendations from the sixth meeting of the Inter-Ministerial Group for Shipbuilding.
The proposed cluster will come up along the northern bank of the Mahanadi, opposite the IFFCO plant in Paradip, and plans to house one or more large shipyards with a combined shipbuilding capacity of around 1.2 million gross tonnes annually.
The original plan envisaged a dedicated waterfront of about two to 2.5 km and a land area of 2,000 to 2,500 acres.
The cluster is strategically positioned close to Paradip Port and Odisha’s mineral and industrial hinterland, giving it access to steel, coal and other raw materials as well as an established maritime logistics network.
The ecosystem could bring together engine manufacturers, steel fabricators and marine equipment suppliers, along with common facilities, training centres and research and development infrastructure.
NSHIPOL must now submit the proposal along with the detailed project report, required statutory clearances and investment commitments within the prescribed timeline for final approval under the scheme.




