Maritime Investment
Mazagon Dock Signs ₹27,000 Crore MoU for Shipbuilding Cluster at Dighi
Mazagon Dock Shipbuilders Ltd (MDL), a defence PSU, will invest around Rs 27,000 crore to establish a greenfield shipbuilding cluster at Dighi Port in Maharashtra's Raigad district, a move that is expected to generate 90,000 jobs, the state government said on 15 September 2026.
| Total Cluster Investment | ₹270 billion (Rs 27,000 crore) |
|---|---|
| MDL Direct Investment | Approximately ₹15,000 crore |
| Annual Shipbuilding Capacity | At least 2 million gross tonnes |
| Job Creation | 90,000 jobs: 15,000 direct jobs in shipbuilding, naval engineering, design, fabrication and operations; 75,000 indirect jobs through suppliers, logistics providers, contractors, service firms and ancillary industries |
| Location | Raigad District, Maharashtra, spans 6,056 acres |
| Waterfront | Three-kilometre waterfront on the Arabian Sea with access to deep water |
| MoU Date | 15 September 2026 |
| Vessel Type Focus | Both warships and commercial ships, shipbuilding, shipbreaking, ship recycling and ship repair activities |
What Was Announced
MDL signed a memorandum of understanding (MoU) with National Shipbuilding and Heavy Industries Park Maharashtra Ltd (NSHIPML) for the mega project in the presence of Chief Minister Devendra Fadnavis. The project, with a proposed investment of Rs 27,000 crore, will enable construction of large commercial vessels and strengthen the country's maritime industrial capabilities.
The greenfield shipbuilding cluster is being developed jointly by the Maharashtra Maritime Board and the Mumbai Port Authority through NSHIPML, a special-purpose company established for the project.
Commercial Shipbuilding Entry
Mazagon Dock Shipbuilders has taken a significant step beyond its traditional defence shipbuilding business. The company has signed an MoU with National Shipbuilding & Heavy Industries Park Maharashtra Limited, or NSHIPML, to become the anchor shipyard for a proposed greenfield shipbuilding cluster at Dighi in Maharashtra.
As of June 30, 2026, Mazagon Dock's ₹18,218 crore balance order book included six multipurpose hybrid-powered vessels for Navi Merchants with ₹695 crore of work remaining and one platform supply vessel for Shipping Corporation of India with ₹367 crore remaining. A large greenfield facility designed specifically for commercial shipbuilding could allow Mazagon Dock to target vessels that are difficult to accommodate efficiently within its existing Mumbai infrastructure. If the facility eventually wins meaningful domestic and export orders, commercial vessels could develop into a second business engine.
Capacity and Infrastructure
The proposed plant is expected to be a world class shipyard for ship building projects of a minimum of 1.2 million Gross Tonnage per year to allow for the manufacture of large commercial vessels. The project will also have an industrial and supply chain network to support the shipbuilding sector.
The company has called the cluster as one that will create a bigger maritime industrial ecosystem around it, attracting ancillary industries, MSMEs and technology partners with the direct skilled jobs the yard will create.
National Significance
In June 2026, Maharashtra identified Dighi in Raigad district as the site for a proposed INR 20,000 crore greenfield shipbuilding cluster. The project is planned across 2,550 acres of the Dighi Port Industrial Area. Dighi was selected over two other shortlisted sites, Nandgaon and Vijaydurg, following a techno-economic feasibility study that assessed site suitability and project structure.
The proposed shipyard, India's largest, will be developed jointly by the Centre and the state government. The project is being developed under the Centre's Greenfield Shipbuilding Cluster Development Plan and is expected to complement the objectives of the Maritime Amrit Kaal Vision 2047.
Strategic Location
Dighi Port is a sea port in Maharashtra, India, on the eastern coast of the Arabian Sea, 42 nautical miles (78 km; 48 mi) from the Mumbai port. It is located on Maharashtra's 877-kilometre coastline, with natural access to deep-water approaches. The proximity to Mumbai, India's primary maritime and financial hub, makes it attractive for attracting skilled workers, marine engineers, and international shipping clients.
The ₹7360.46-crore DPIA project is expected to be developed alongside the port expansion, and will be a major node of the proposed Delhi-Mumbai Industrial Corridor (DMIC).
What Comes Next
The MoU will remain valid for five years from its effective date, or until it is superseded by a comprehensive Concession Agreement, including the Lease Agreement, whichever is earlier. Timelines for land development, phasing and hiring at Dighi will determine when the projected 90,000 jobs materialise.
The key marker to watch is how fast the company can convert its commercial ship-building MoUs into firm revenue-accretive contracts.
Frequently asked questions
What exactly is this project?
A greenfield shipbuilding cluster with a proposed investment of Rs 27,000 crore that will enable construction of large commercial vessels and add to India's shipbuilding capacity. It will manufacture both warships and commercial ships, besides undertaking shipbuilding, shipbreaking, ship recycling and ship repair activities.
Who is investing and who is developing it?
Mazagon Dock Shipbuilders (MDL) will invest around Rs 27,000 crore overall, with approximately ₹15,000 crore committed by MDL as the anchor shipyard. The cluster is being developed jointly by the Maharashtra Maritime Board and the Mumbai Port Authority through NSHIPML, a special-purpose company set up for the project.
How many jobs will it create?
The project is projected to generate around 90,000 jobs: 15,000 direct jobs in shipbuilding, naval engineering, design, fabrication and operations, and 75,000 indirect jobs through suppliers, logistics providers, contractors, service firms and ancillary industries.
Why is this significant for India?
This is the clearest statement yet of India's intent to move from a country that buys ships to a country that builds them at global scale. The project is expected to increase India's domestic shipbuilding capacity, attract technology and investment, create skilled jobs and improve India's competitiveness in the global maritime sector.
How was Dighi chosen over other locations?
Dighi has emerged as a strong candidate because of its proximity to port infrastructure and industrial land bank. The Dighi Port Industrial Area in Raigad spans more than 6,000 acres and offers multimodal connectivity through road and rail links. Dighi was selected over two other shortlisted sites, Nandgaon and Vijaydurg, following a techno-economic feasibility study.
Is MDL's entry into commercial shipbuilding new?
As of June 30, 2026, Mazagon Dock's order book included commercial vessels with work remaining. Commercial shipbuilding is therefore not completely new to the company, but it is still small compared with its defence activities. This MoU is a plan to create capacity that could allow Mazagon Dock to compete for much larger commercial shipbuilding opportunities in the future.
Sources
- Indian Infrastructure: Mazagon Dock Shipbuilders Limited plans Rs 270 billion shipbuilding cluster at Dighi
- Marine Insight: India's Mazagon Dock To Invest ₹27,000 Crore To Establish Greenfield Shipbuilding Cluster
- Daily Pioneer: India's largest shipyard to come up in Raigad
- Projects Monitor: Mazagon Dock to invest Rs 27,000 crore in Dighi Port shipyard
- IMARC Engineering: Maharashtra's INR 20,000 Crore Greenfield Shipbuilding Cluster
- IndMoney Blog: Mazagon Dock Dighi Shipyard Deal Explained
- IASPoint: Developing India's Maritime Manufacturing Clusters
- PIB Press Release: Secretary DPIIT undertakes site visit of proposed Dighi Port Industrial Area
- NICDC Official: Dighi Port Industrial Area Maharashtra