The Andhra Pradesh government has approved the establishment of a Greenfield Port and National Mega Shipbuilding Cluster at Dugarajapatnam. The project, to be developed under the Ministry of Ports, Shipping and Waterways' scheme, will be managed by a Special Purpose Vehicle formed by the Andhra Pradesh Maritime Board and Visakhapatnam Port Trust. Approximately 2,000 acres are being acquired for the shipbuilding cluster, which aims for a 0.5 million gross tonnes annual capacity within ten years of the shipyard's commissioning.