Industry Odisha Bureau, Sep 02: Odisha has secured in-principle approval for a major shipbuilding cluster. The Centre cleared the Rs 24,700-crore project in Kendrapara district. The upcoming cluster will come up near Paradip Port. It targets an annual shipbuilding capacity of 1.2 million gross tonnes. Officials called it a landmark push for India’s maritime ambitions. The cluster aligns with the government’s Maritime India Vision.
Strategic Location Near Paradip Port
Paradip Port’s proximity gives the cluster a key logistics edge. It offers deep-water access and established cargo infrastructure. Industry experts say this location will cut turnaround times. Raw material movement and vessel delivery should become smoother. The site also benefits from Odisha’s existing steel and mining belt. This proximity strengthens the state’s industrial ecosystem further. Boost for Shipbuilding and Ancillary Industries
The cluster is expected to spur ship repair activity significantly. It will also drive demand for marine equipment manufacturing. Steel producers stand to gain from rising local demand. Ancillary industries, including fabrication and marine components, will expand too. Analysts believe the project could position Odisha as a shipbuilding hub. It may attract fresh private and foreign investment.
Employment and Economic Impact
The shipbuilding cluster is likely to generate large-scale employment. Skilled workers in welding, engineering, and design will benefit. Ancillary units around marine equipment and ship repair will hire too. Local youth are expected to gain vocational training opportunities. State officials said the project supports Odisha’s industrial diversification goals. It reduces dependence on traditional mining-led growth models.
Next Steps for the Kendrapara Project
Odisha will now proceed with detailed project planning. Land allocation and environmental clearances remain the next milestones. Officials expect construction activity to begin within the coming months. The state government has prioritised single-window clearance for the cluster. Once operational, the cluster could significantly boost India’s shipbuilding capacity. It strengthens the country’s position in global maritime trade.

