Andhra Pradesh Minister for Education, IT and Electronics Nara Lokesh has invited South Korean marine equipment companies to invest in the state’s growing maritime sector, highlighting Andhra Pradesh as one of the most promising destinations for shipbuilding and marine manufacturing on India’s east coast.
Speaking at a roundtable meeting organised by the Korea Marine Equipment Association (KOMEA) in Busan, South Korea, Lokesh said Andhra Pradesh has a 1,053-km-long coastline and handles more than 330 million tonnes of cargo annually through one major port and five operational non-major ports. He added that four new greenfield ports are currently under development, while the state has over 110,000 acres of industrial land available for investors.
Lokesh showcased the upcoming Dugarajapatnam Shipbuilding Cluster, India’s first state-approved shipbuilding cluster, which is being developed over 3,488 acres with an estimated investment of ₹30,000 crore. The project is being jointly developed by the Andhra Pradesh Maritime Board (APMB) and Visakhapatnam Port Authority under the Visakhapatnam-Chennai Industrial Corridor (VCIC). Located close to Sri City and Krishnapatnam Port, the cluster offers strong logistics and connectivity advantages.
He invited KOMEA members to establish manufacturing units for marine engines, propulsion systems, navigation equipment, deck machinery, electrical systems, outfitting solutions and specialised marine equipment within the cluster. Lokesh also proposed setting up testing and certification laboratories, plug-and-play infrastructure and common manufacturing facilities to support Korean companies looking to localise production for the Indian market.
Highlighting India’s growing opportunities in the maritime sector, Lokesh said the country currently has shipbuilding orders worth nearly US$12.3 billion. He noted that around 93 percent of India’s international cargo is still transported by foreign vessels, while nearly half of the coastal fleet is over 20 years old, creating significant demand for new ships and repair facilities. He also pointed to the Union Government’s ₹70,000-crore maritime package, which offers financial assistance of 15-25 percent for shipbuilding projects, along with the ₹25,000-crore Maritime Development Fund that provides capital grants for new shipyards.
Emphasising Andhra Pradesh’s investor-friendly ecosystem, Lokesh cited the rapid execution of major projects by companies such as Kia, LG Electronics and AM/NS as examples of the state’s “Speed of Doing Business” approach. He also noted that several Korean companies are already operating successfully in Sri City, while many others have established a presence in the Chennai region.
Lokesh further invited KOMEA to collaborate with the Andhra Pradesh Maritime Board in setting up a dedicated Korea Marine Equipment Desk, an India Ship Technology Centre, joint skill development initiatives and research and development facilities in the state. Representatives from leading South Korean companies, including Hanla IMS, Hyundai Welding, Daesun Shipyard, Sunbo Industries, Oriental Precision & Engineering, Fine Korea and JWO Engineering, participated in the roundtable discussions.