In a transformative move for India’s maritime sector, the Paradip Port Authority (PPA) and the Odisha Maritime Board (OMB) have signed a Memorandum of Understanding (MoU) to establish a state-of-the-art shipbuilding cluster in Odisha.
This landmark agreement, inked on September 19, 2025, aligns with India’s Maritime Amrit Kaal Vision 2047, which aims to elevate the nation to one of the top five shipbuilding countries globally.
The proposed shipbuilding cluster, to be developed along the Mahanadi riverbank in Kendrapara district opposite the IFFCO Plant in Paradip, carries an estimated investment of Rs.24,700 crore. Spanning 2,000-2,500 acres with a dedicated waterfront of 2.0-2.5 km, the cluster will feature one or more large shipyards capable of producing 1.0-1.2 million Gross Tonnage (GT) annually. The project will foster a fully integrated ecosystem, including ancillary industries such as engine manufacturing, steel fabrication, and equipment supply, alongside shared infrastructure like administrative offices, training centres, and R&D facilities. This cluster-based approach is designed to attract investment, boost competitiveness, and drive sustainable growth in India’s commercial shipbuilding sector.
In a parallel development, the PPA, OMB, and Sagarmala Finance Corporation (SFC) have also signed a tripartite agreement to develop a new satellite port in Odisha. This strategic initiative aims to enhance port connectivity, streamline logistics, and support the burgeoning maritime infrastructure in the region. Together, these projects mark a significant step towards positioning Odisha as a hub for maritime innovation and economic growth.
By fostering public-private partnerships and leveraging Odisha’s strategic coastal location, these initiatives are poised to create thousands of jobs, stimulate local economies, and contribute to India’s vision of becoming a global maritime powerhouse by 2047.
