Shipbuilding Development Scheme (SbDS) grants in-principle approval for Rs 24,700 crore Odisha shipbuilding cluster

Key facts

• The Ministry of Ports, Shipping and Waterways has granted in-principle approval to NSHIPOL under the Shipbuilding Development Scheme (SbDS) for a Rs 24,700 crore shipbuilding cluster in Odisha.
• The cluster will be located on the northern bank of the Mahanadi river in Kendrapada district, opposite the IFFCO plant in Paradip.
• The project will be developed through a special purpose vehicle involving the Odisha Maritime Board and Paradip Port Authority.
• The cluster is planned to have shipyards with a combined building capacity of about 1.2 million gross tonnes per year.
• The in-principle approval followed recommendations from the sixth meeting of the Inter-Ministerial Group for Shipbuilding (IMGB) held on August 10, 2026.
• NSHIPOL will now prepare a detailed project report and must secure statutory approvals including environmental clearance and Coastal Regulation Zone permission.