Paradip Port and Odisha Maritime Board partner to establish shipbuilding cluster

By Admin

22 Sep, 2025

India’s maritime sector is set for a transformative leap as Paradip Port Authority (PPA) and the Odisha Maritime Board (OMB) have signed a landmark Memorandum of Understanding (MoU) to establish a large-scale shipbuilding cluster in Odisha. This strategic move, finalized on September 19, 2025, complements the recent initiatives to expand port infrastructure in the state, including the development of the Bahuda Port. Together, these projects position Odisha as a maritime hub of the future.

Launch of Bahuda Satellite Port

The MoU was signed alongside another significant agreement involving Paradip Port Authority, Odisha Maritime Board, and Sagarmala Finance Corporation Limited (SMFCL). This agreement officially launches the development of a new all-weather greenfield satellite port of PPA at Bahuda Muhana in Ganjam District, Odisha.

Identified under the Maritime India Vision 2030 and the PM Gati Shakti National Master Plan, Bahuda Port is envisioned to handle 150 Million Tonnes Per Annum (MMTPA), with a projected investment of around Rs 21,500 crore. The port will feature four docks, a sea gate, and earmarked areas for port-led industrialization, serving as a vital economic catalyst for Southern Odisha, North Coastal Andhra Pradesh, and parts of Chhattisgarh.

PPA will lead the joint venture, leveraging its port development expertise, while OMB will facilitate state-level support, approvals, and external connectivity. SMFCL will contribute financial structuring and quasi-equity support. A Special Purpose Vehicle (SPV) will oversee the execution, financing, construction, and operation of the port, ensuring efficiency and timely delivery.

Shipbuilding Cluster in Kendrapara

In tandem with port development, PPA and OMB are set to create a world-class shipbuilding cluster on the Mahanadi riverbank in Kendrapara district, opposite the IFFCO Plant in Paradip. With an estimated investment of Rs 24,700 crore, this ambitious project aims to establish a fully integrated ecosystem for shipbuilding and allied industries.

The cluster will include:

• A dedicated waterfront of 2.0–2.5 km and 2,000–2,500 acres of land
  
  

• One or more shipyards with a combined capacity of 1.0–1.2 million Gross Tonnage (GT) annually
  
  

• Ancillary industries for engines, steel fabrication, and equipment supply
  
  

• Common infrastructure such as training centers, R&D facilities, and administrative offices
  
  

This initiative directly aligns with the Maritime Amrit Kaal Vision 2047, which seeks to elevate India into the top five shipbuilding nations globally.

Economic Impact and Connectivity

Both the Bahuda Port and the Kendrapara shipbuilding cluster are expected to drastically reduce logistics costs, enhance EXIM and coastal shipping, and attract major investments in maritime manufacturing. The projects will create new business opportunities for exporters and importers while generating significant employment and industrial growth in Odisha and neighboring regions.

By establishing a dual approach strengthening port capacity and building shipbuilding capabilities Odisha is set to become a maritime growth engine for India.

Conclusion

The collaboration between Paradip Port Authority, Odisha Maritime Board, and Sagarmala Finance Corporation marks a decisive step toward realizing India’s maritime ambitions. With Bahuda Port boosting cargo handling capacity and the Kendrapara shipbuilding cluster nurturing industrial growth, these projects embody the nation’s vision for a stronger, self-reliant, and globally competitive maritime future.