Expanding Commercial Shipbuilding
Mazagon Dock Plans Major Greenfield Shipyard Clusters in Andhra Pradesh and Maharashtra
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NSHIP-AP, the Andhra Pradesh entity that signed the MoU with MDL, was jointly formed by the Andhra Pradesh Maritime Board and the Visakhapatnam Port Authority. The proposed Dugarajapatnam cluster covers 3,488 acres and has about 2.1 kilometres of waterfront.
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The Dugarajapatnam project is among clusters covered by the Centre’s framework envisaging one greenfield shipbuilding cluster per state; Andhra Pradesh and Tamil Nadu are two of five states to have received in-principle approval. MDL had previously signed an MoU with Tamil Nadu for a Thoothukudi shipyard, but Tamil Nadu subsequently selected HD Korea Shipbuilding & Offshore Engineering as the anchor shipyard.
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The MoU for MDL’s role at Maharashtra’s Dighi cluster is valid for five years from its effective date, or until it is replaced by a comprehensive Concession Agreement, including a lease agreement.
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Maharashtra Chief Minister Devendra Fadnavis said the Dighi initiative could create 15,000 direct and 75,000 indirect jobs and bring shipbuilding, ship repair, shipbreaking and ship recycling together at one site. He also projected that Maharashtra would account for 40% of India’s shipbuilding capacity.
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The Dighi cluster is being jointly developed by the Maharashtra Maritime Board and the Mumbai Port Authority through NSHIPML, a special-purpose company, under the Centre’s Greenfield Shipbuilding Cluster Development Plan and in alignment with Maritime Amrit Kaal Vision 2047.
Mazagon Dock Shipbuilders, India's premier defense shipmaker, is pivoting toward commercial shipbuilding with two massive new yards. NewsMeter reported that MDL signed an agreement with Andhra Pradesh to build a ₹15,000 crore greenfield shipyard at Dugarajapatnam, expected to create 45,000 jobs. Separately, TheWeek reported MDL committed to anchor Maharashtra's Dighi cluster with an investment between ₹15,000 and ₹27,000 crore.
Both projects align with India's Maritime Amrit Kaal Vision 2047 and represent a major shift for MDL away from purely military vessels. The Andhra Pradesh yard will produce commercial tankers, bulk carriers, container ships, and LNG carriers with 1.2 million gross tonnes of annual capacity. PTI reported that Andhra Pradesh Chief Minister N. Chandrababu Naidu said the state is "committed to being at the forefront of this journey by leveraging its long coastline."
Andhra Pradesh Yard Spans 3,488 Acres with Deep Waterfront
The Dugarajapatnam cluster covers 3,488 acres in Tirupati district with 2.1 kilometres of waterfront access. TheNewIndianExpress reported the site offers natural advantages for large vessel construction. A feasibility study estimated total development costs of ₹38,767 crore—₹29,254 crore for the shipyard and ship-repair facility, plus ₹9,513 crore for port infrastructure that the central government will develop.
Maharashtra Aims for 40% of India's Shipbuilding Capacity
Maharashtra's Dighi cluster in Raigad spans 2,000 acres with 2.6 kilometres of waterfront. TheWeek reported Maharashtra Chief Minister Devendra Fadnavis projected the yard will create 15,000 direct jobs and 75,000 indirect jobs. Fadnavis said Maharashtra's cluster could command 40% of India's total national shipbuilding capacity, unifying shipbuilding, repair, shipbreaking, and recycling at one location.
MDL Shifts Strategy After Tamil Nadu Deal Fell Through
MDL previously pursued a shipyard at Thoothukudi in Tamil Nadu but TheFederal reported that Tamil Nadu selected HD Korea Shipbuilding as its anchor yard instead. That setback cleared the way for MDL to commit to both Andhra Pradesh and Maharashtra. ETInfra noted the center's Greenfield Shipbuilding Cluster Development Plan envisions one major shipyard per coastal state, with Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat, and Odisha receiving approvals.
Commercial Vessels Will Drive Growth Beyond Military Ships
MDL has built Indian naval vessels for decades but lacks large-scale commercial shipbuilding experience. ETInfra reported the dual anchor commitments mark a major pivot toward high-value commercial construction—particularly LNG carriers, which command premium prices globally. Both yards will target 1.2 million gross tonnes of annual capacity initially, with potential to expand. The Andhra Pradesh yard is expected to be operational within five to seven years.
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