Maharashtra Finalises Dighi as Site for ₹20,000-Crore Greenfield Shipbuilding Cluster

What was decided

Maharashtra has moved from evaluating three coastal sites to naming a single preferred location for its planned mega shipbuilding cluster. Mumbai Port Authority Chairman M Angamuthu told The Economic Times Infra that the project had moved into a more concrete phase, saying the site is a good location for the proposed cluster. The selection of Dighi follows a comprehensive technical evaluation of multiple coastal sites including Nandgaon and Vijaydurg.

This is a site-selection and structuring decision, not yet a final Cabinet sanction. The Dighi project itself is still in the stage of site finalisation, DPR preparation, and anchor alignment.

Who decided, and how

The call was driven jointly by the state government and the Mumbai Port Authority, with the anchor shipyard (MDL) providing formal backing rather than a signed final commitment. "We have almost identified Dighi for the greenfield shipbuilding cluster in Maharashtra. It is a good location. We have requested Mazagaon Dock Shipbuilders to support us. They have responded in writing that they are supporting us," said M Angamuthu, Chairman, Mumbai Port Authority.

On the state's priorities, Maharashtra Ports Minister Nitesh Rane said the state government intends to prioritize projects that combine industrial investment with employment generation, green technology, and regional development, adding that Maharashtra is committed to becoming the leading state in the blue economy.

The site review itself had been formally under way for at least two months before this announcement. In May 2026, the Maharashtra government conducted a detailed technical and financial review of three potential sites — Nandgaon, Dighi and Vijaydurg — with officials directed to undertake field surveys, land reclamation planning, traffic launching studies and maritime infrastructure assessment under Ports Minister Nitesh Rane.

Operative details: structure, area and funding

Corporate structure: Mumbai Port Authority and the Maharashtra government have formed an equal special purpose vehicle (SPV) to set up the mega shipbuilding cluster.

Anchor shipyard: The Maharashtra government has approached state-run Mazagon Dock Shipbuilders Limited (MDL) to serve as the anchor shipyard. Under the national scheme's terms, the SPV must secure investment commitments from one or more anchor shipyards, and at least one of them must have a design capacity of at least 0.5 million gross tonnage per annum, to be achieved within ten years from the date the shipyard is commissioned.

Area: Figures vary by source and by stage of planning. One report on the cluster's specific footprint at Dighi cites a cluster spread across 2,550 acres. Separately, the generic scheme template describes each cluster including a waterfront of about 2 km and a landside area of around 2,000 acres, including 1,000 acres each for shipyards and ancillary industries, along with internal and social infrastructure and shared facilities.

Funding: Once the anchor shipyard is finalised, the cluster will be supported under the Union government's Shipbuilding Development Scheme, which has been allocated Rs 19,989 crore. That is a national allocation across clusters, not a Dighi-specific grant. The scheme, approved by the Union Cabinet in 2025, is designed to support the development of three to four greenfield shipbuilding clusters across India. The wider Cabinet package behind it was substantial: on 24 September 2025 the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a comprehensive package of Rs.69,725 crore to revitalize India's shipbuilding and maritime ecosystem, introducing a four-pillar approach covering financing, greenfield/brownfield shipyard development, skilling and policy reform.

Technical planning: A Detailed Project Report and feasibility study for the Dighi project is being prepared by Haskoning India Consulting Pvt Ltd, indicating that the initiative is moving through formal planning and technical evaluation.

Location and what it replaces

The chosen site is defined relative to the existing private port at Dighi. The identified site lies south of Dighi Port, which is operated by Adani Ports and Special Economic Zone Ltd (APSEZ).

Two other sites were formally dropped from contention. The Maharashtra Maritime Board had identified Dighi as one of three priority sites, alongside Nandgaon and Vijaydurg, for establishing the state's first major shipyard cluster. Dighi's advantage was largely locational and logistical: it is a strong candidate because of its proximity to port infrastructure and industrial land bank, with the Dighi Port Industrial Area in Raigad spanning more than 6,000 acres and offering multimodal connectivity through road and rail links.

How this differs from the Dighi Port Industrial Area (NICDC smart city)

The shipbuilding cluster is a separate, newer decision from the long-running NICDC industrial smart city at the same location. The Dighi Port Industrial Area (DPIA) traces to a 2024 national decision: at the backdrop of the historic and far-reaching decision by the Government of India on 28th August 2024 approving 12 industrial nodes/cities in the country under the National Industrial Corridor Development Programme, the Secretary of DPIIT visited the proposed site for development of the Dighi Port Industrial Area.

That project's scale and cost are fixed figures from the NICDC/DPIIT briefing, distinct from the shipbuilding cluster's ₹20,000-crore estimate: DPIA is proposed over 6,056 acres at a cost of Rs.5,469 crore, and will be a port-led development due to its proximity to the Dighi Port, which is 55 km from the site. Its projected economic impact was also separately quantified: with sectors like general engineering, food & beverages and pharmaceuticals proposed to set up manufacturing units at DPIA, an investment of Rs. 38,000 crore is expected from these industries, creating employment opportunities for about 1,14,000 people.

In short: DPIA is an NICDC-governed, multi-sector industrial smart city already through Cabinet approval and master-planning; the shipbuilding cluster is a sector-specific, state-driven project still at site-selection and DPR stage, sited adjacent to (south of) the port that gives DPIA its name.

Practical effect and what happens next

Naming Dighi as the preferred site narrows planning uncertainty for contractors and vendors but does not yet constitute a final, funded project. A location decision can reduce uncertainty for vendors and contractors assessing access, water frontage, and connectivity, and the SPV is expected to develop both land and seaside infrastructure, so location and coastal engineering needs could shape the DPR outcomes.

Three items remain outstanding before construction funding is locked in: formal confirmation of MDL (or another operator) as anchor shipyard, completion of the Haskoning DPR/feasibility study, and release of Shipbuilding Development Scheme funds once the anchor is finalised. The next milestone being watched is the formal identification of the anchor shipyard and the finalisation of funding under the scheme.

The stakes are tied to a national target: the project forms a vital part of the national Maritime Amrit Kaal Vision 2047 to elevate India into the top five global shipbuilders — India currently ranks 16th in international shipbuilding capacity, and the state seeks to expand output forty times over to 4.5 million gross tonnage by 2037.