Mazagon Dock Shipbuilders Limited (MDL) signed a Memorandum of Understanding (MoU) on 15 September 2026 to act as the anchor shipyard for a greenfield shipbuilding industrial cluster at Dighi in Raigad district of Maharashtra. The pact targets annual capacity of at least 2 million Gross Tonnage (GT) with an investment of about ₹27,000 crore and expected creation of 90,000 jobs. The project links state industrial policy with national maritime goals to cut import dependence and build large commercial ships in India.
What Does Mazagon Dock Shipbuilders Do?
Mazagon Dock Shipbuilders Limited is a government owned defence shipyard under the Ministry of Defence, headquartered at Mazagon in Mumbai, Maharashtra. Mazagon Dock Shipbuilders builds warships and conventional submarines for the Indian Navy and Coast Guard, and also builds cargo ships, support vessels, tugs and offshore structures. Yes, Mazagon Dock is a government company and a Public Sector Undertaking (PSU), which means the central government owns a majority stake and controls its management.
The roots of Mazagon Dock go back to 1774, when a small dry dock was built at Mazagon to repair ships. A dry dock is a narrow basin that can be drained of water so workers can repair the hull of a ship. Mazagon Dock was incorporated as a private limited company in 1934 and the Government of India took it over in 1960. After the takeover, Mazagon Dock grew into the premier warship building yard of India. Mazagon Dock received Mini Ratna Category I status in 2006 and Navratna status in 2024, which gives a PSU greater financial freedom to invest without prior government approval.
Since 1960, Mazagon Dock has delivered more than 800 vessels, including 31 warships from advanced destroyers to missile boats and 8 submarines. Mazagon Dock is the only Indian shipyard to have built both destroyers and two types of conventional submarines. Its recent deliveries include the six Kalvari class Scorpene submarines built between 2017 and 2025, the Nilgiri class stealth frigates and the Visakhapatnam class destroyers such as INS Surat. On 15 January 2025, three Mazagon Dock built platforms, INS Nilgiri, INS Surat and INS Vaghsheer, were commissioned together in Mumbai. Mazagon Dock shares were listed on the BSE and NSE in 2020. The Chairman and Managing Director of Mazagon Dock is Captain Jagmohan (as of September 2026).
What Happened at Dighi on 15 September 2026?
On 15 September 2026, Mazagon Dock Shipbuilders signed an MoU with the National Shipbuilding and Heavy Industries Park Maharashtra Limited (NSHIPML) in Mumbai. The MoU names Mazagon Dock as the anchor shipyard for the proposed Greenfield Shipbuilding Industrial Cluster at Dighi in Raigad. Maharashtra Chief Minister Devendra Fadnavis was present at the signing, along with Fisheries and Ports Minister Nitesh Rane. Captain Jagmohan signed for Mazagon Dock and Pradeep P., Managing Director of NSHIPML, signed for the park company.
Under the MoU, Mazagon Dock has envisaged shipbuilding capacity of at least 1.2 million GT per year with a proposed investment of about ₹15,000 crore in its own filing to the stock exchanges. The Maharashtra government release for the same event places the full cluster target at 2 million GT per year with an investment of about ₹27,000 crore. The two figures describe different scopes of the same plan, with the lower figure covering the anchor yard and the higher figure covering the wider cluster output. The state government expects the project to generate 90,000 jobs directly and indirectly.
The MoU sets the framework for a strategic partnership and will remain valid for five years from its effective date or until it is replaced by a detailed concession agreement including a lease agreement, whichever is earlier. The stated purpose is to build large commercial vessels at Dighi and strengthen domestic maritime industrial capacity. Mazagon Dock has said it will work with all stakeholders to create a modern and globally competitive facility at Dighi.
Where Is the Raigad Cluster Coming Up?
Raigad is a coastal district in the Konkan region of Maharashtra, south of Mumbai. Dighi is located on the Dighi Creek in Raigad, close to the Arabian Sea. The site sits inside the Dighi Port Industrial Area, which spreads over more than 6,000 acres and already has road links and port infrastructure. The location gives natural access to deep water and sits near the industrial belt of Pune and Kolhapur, with Mumbai as the nearest major maritime and financial centre.
The Dighi cluster is planned as a plug and play industrial area, which means common infrastructure like breakwaters, channels, roads, power and water will be built first so shipyards and suppliers can start work faster. The broad site parameters reported for Dighi are summarised below.
| Feature of Dighi Site | Planned Specification |
|---|---|
| Total cluster area | About 2,000 acres, with nearly 1,000 acres for shipyards and 1,000 acres for ancillary units and common facilities |
| Waterfront length | About 2.6 to 3 km along Dighi Creek |
| Water depth | About 14 metres after dredging, suitable for large ships |
| Adjoining port | Dighi Port, now operated by Adani Ports and Special Economic Zone |
| Road links | Connections to NH 66 (Mumbai Goa Highway) through state highways at Indapur and Mangaon |
Maharashtra has identified about 5,800 acres across Dighi, Jaigad, Vijaydurg and Bankot for shipbuilding uses. This forms nearly 40 percent of the about 15,000 acres identified across five coastal states for such clusters. The Maharashtra government selected Dighi as the preferred site after comparing three other locations. In August 2026, the inter ministerial National Shipbuilding Mission gave in principle approval for the Dighi cluster at an estimated project cost of about ₹27,500 crore.
Who Will Build and Govern the Dighi Cluster?
The National Shipbuilding and Heavy Industries Park Maharashtra Limited, or NSHIPML, will develop the Dighi cluster. NSHIPML is a Special Purpose Vehicle (SPV) formed jointly by the Maharashtra Maritime Board and the Mumbai Port Authority. A Special Purpose Vehicle is a separate company created for one specific project so funds, land and responsibilities stay clearly assigned. The Maharashtra Maritime Board looks after non major ports and coastal development in the state, while the Mumbai Port Authority manages the major port at Mumbai under the central government.
Under the central guidelines for greenfield clusters, the SPV will build common maritime and land based infrastructure. This includes breakwaters, dredged channels and basins, reclaimed land, internal roads, utilities and common assets like floating cranes and barges. Mazagon Dock, as the anchor shipyard, brings the core investment commitment to set up shipbuilding facilities inside the cluster. The anchor model ensures that new capacity comes with an experienced operator from day one, instead of starting from zero.
The National Shipbuilding Mission (NSbM), headed by the Secretary of the Ministry of Ports, Shipping and Waterways, grants approvals for such clusters. The Directorate General of Shipping acts as the implementing agency that examines applications and monitors funds. Haskoning India Consulting has been appointed to prepare the Detailed Project Report (DPR) for Dighi. The DPR will be checked by an independent evaluation agency for technical strength and cost reasonableness. After in principle approval, the SPV is expected to seek final approval with land, clearances and investment details, normally within 24 months.
What Is a Greenfield Project and How Is It Different From Brownfield?
A greenfield project is a new project built from scratch on unused or undeveloped land where no earlier facility exists. A greenfield shipyard therefore means a completely new shipbuilding yard with fresh waterfront, docks, workshops and housing, while a greenfield shipbuilding cluster means a large plug and play zone that houses one or more such new yards plus engine makers, steel fabricators and equipment suppliers.
A brownfield project, by contrast, expands or upgrades an existing facility on land that is already in industrial use. The central Shipbuilding Development Scheme supports both routes, with separate guidelines for greenfield cluster development and for brownfield capacity expansion. The comparison below explains the difference in simple terms.
| Basis | Greenfield Project | Brownfield Project |
|---|---|---|
| Land | Fresh site with no prior factory, as at Dighi | Existing yard or industrial site |
| Construction | Full new infrastructure including breakwater and channel | Addition of new docks, cranes or workshops to old yard |
| Time and cost | Higher initial cost and longer build time | Lower initial cost and faster output gain |
| Example in shipbuilding | Proposed cluster at Dighi in Raigad | Capacity addition at Mazagon Dock in Mumbai |
The shipbuilding industry covers the design, construction, repair and recycling of ships and floating structures. A shipyard is the physical works where ships are built or repaired. A shipbuilding cluster groups a large yard with ancillary industries, training centres, research units and logistics links in one zone. This grouping cuts transport costs, improves supply of parts and skilled workers, and helps small firms grow around the main yard.
What Support Do the Centre and Maharashtra Offer?
The Maharashtra Shipbuilding, Ship Repair and Ship Recycling Facilities Development Policy, 2025 forms the state backbone for the Dighi plan. The state cabinet approved the policy on 29 April 2025 and a Government Resolution followed in May 2025. The policy offers three development models, which are maritime shipyard clusters, standalone shipyards for specialised work, and shipyard projects inside ports. Private participation is encouraged under all three models through transparent land allotment by the Maharashtra Maritime Board and land at concessional rates or long term lease of 30 years with renewal.
The policy provides a capital subsidy of 15 percent of project cost, released in four equal parts during construction as each 25 percent of work is completed, with the final part after commercial operations begin. Developers setting up skill centres for shipbuilding, repair or recycling can receive support of up to ₹5 crore or 60 percent of facility cost, while research and development support of up to ₹5 crore is also available. The state has set a goal to hold at least one third of national shipbuilding and repair output by 2030. Maharashtra expects investment of ₹6,600 crore and 40,000 jobs by 2030, rising to ₹18,000 crore and more than 3.3 lakh jobs by 2047.
At the central level, the Shipbuilding Development Scheme (SbDS) carries an outlay of ₹19,989 crore and runs from 24 September 2025 to 31 March 2036. The scheme plans three to four greenfield clusters, limited to one supported cluster per state, and provides 100 percent capital assistance as a grant for approved common items like breakwaters, channels, land development and shared assets. The scheme works alongside the Shipbuilding Financial Assistance Scheme of ₹24,736 crore, which offsets the cost gap of Indian yards against foreign yards, and the Maritime Development Fund of ₹25,000 crore for long term finance. Together with skilling and technology support, the total central package amounts to ₹69,725 crore.
How Does the Raigad Pact Fit Into Maritime Amrit Kaal Vision 2047?
The Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047 are the two national roadmaps for ports, shipping and shipbuilding. Maritime India Vision 2030 aims to place India among the top 10 shipbuilding nations by 2030. Maritime Amrit Kaal Vision 2047 aims to place India among the top five shipbuilding nations by 2047 with annual output capacity of 4.5 million GT. The Dighi cluster, with a planned capacity of 2 million GT, could alone meet nearly half of that long term national target when fully built.
The scale of the challenge is large. India currently ranks 16th in shipbuilding with only about 0.06 percent of the global commercial market and less than 1 percent of world output. China, South Korea and Japan together hold more than 90 percent of global production. India pays about $85 billion each year in freight charges to foreign shipping lines for its export and import cargo. The government estimates domestic demand of at least 207 vessels of 8.6 million GT across petroleum, steel, fertilisers and public shipping needs, with investment near ₹1.5 lakh crore.
The National Shipbuilding Mission has now given in principle approval to five greenfield clusters, which are Thoothukudi in Tamil Nadu, Dugarajapatnam in Andhra Pradesh, Kuchhadi in Gujarat, Kendrapara in Odisha and Dighi in Maharashtra. Each cluster is planned for about 1.2 million GT or more, with 2,000 acres and about 2 km of waterfront as the standard template. Early results show movement, with national shipbuilding output rising by 41 percent from 40,923 GT in 2024 to 57,637 GT in 2025. Since shipbuilding has an employment multiplier of 6.4, each direct job supports several indirect jobs in steel, engines, electronics and services.
How Does MDL Compare With Other Indian Shipyards?
India has a small set of large public shipyards that lead both defence and commercial orders. The three most discussed names are Mazagon Dock Shipbuilders, Cochin Shipyard and Garden Reach Shipbuilders and Engineers (GRSE). Cochin Shipyard, headquartered at Kochi in Kerala, is the largest public yard by dock size and leads in commercial ships and aircraft carrier construction. Garden Reach Shipbuilders and Engineers, headquartered at Kolkata in West Bengal, focuses on frigates, corvettes and patrol vessels for the Navy and Coast Guard. Mazagon Dock remains unique for building both destroyers and conventional submarines.
| Shipyard | Headquarters | Core Strength |
|---|---|---|
| Mazagon Dock Shipbuilders Limited (MDL) | Mumbai, Maharashtra | Destroyers, stealth frigates and Scorpene submarines, now anchor for Dighi greenfield cluster |
| Cochin Shipyard Limited | Kochi, Kerala | Large commercial vessels, ship repair and aircraft carrier INS Vikrant |
| Garden Reach Shipbuilders and Engineers (GRSE) | Kolkata, West Bengal | Frigates, corvettes, patrol and survey vessels |
The Dighi pact is part of a wider multi state footprint for Mazagon Dock. On 19 September 2025, Mazagon Dock signed an MoU with Guidance Tamil Nadu, the investment promotion agency of Tamil Nadu, to explore a world class greenfield yard on the east coast at Thoothukudi. Cochin Shipyard signed a parallel MoU for Tamil Nadu at the same Samudra Se Samriddhi event in Bhavnagar, Gujarat, with a combined stated investment of ₹30,000 crore for the two projects. Mazagon Dock later expressed interest in Andhra Pradesh for a mega cluster near Dugarajapatnam with a similar capacity of about 1.2 million GT. This spread across west and east coasts shows how central policy encourages one anchor yard to support more than one state cluster.
The Way Forward
The immediate next step for the Dighi cluster is completion of the Detailed Project Report and securing final approval from the National Shipbuilding Mission. The SPV will need to tie up land parcels, waterfront rights, environmental and coastal regulation clearances, and power, water and road links before construction starts. The MoU will then give way to a detailed concession agreement and lease agreement that fix the commercial terms, timelines and obligations of Mazagon Dock and the park company.
Full build out of such a mega yard normally takes 10 to 12 years in phases, starting with breakwaters, dredging and one large dock, followed by additional berths and supplier sheds. Success will depend on three factors. First, an ancillary ecosystem of engine makers, steel fabricators and equipment firms must come up on the reserved 1,000 acres so most parts are sourced nearby. Second, skill centres and the India Ship Technology Centre model must supply welders, fitters, designers and naval architects in large numbers. Third, assured orders for coastal ships, tankers, bulk carriers and export vessels must flow so the new capacity stays occupied. If these three lines move together, Dighi can help Maharashtra reach its 2030 goal of one third of national output and help India move toward 4.5 million GT by 2047.
Key Takeaways
- Mazagon Dock Shipbuilders signed an MoU with NSHIPML on 15 September 2026 to anchor the Dighi greenfield cluster in Raigad, Maharashtra.
- The Dighi plan targets 2 million GT annual capacity with ₹27,000 crore investment and 90,000 jobs.
- NSHIPML is a joint SPV of the Maharashtra Maritime Board and the Mumbai Port Authority.
- The Maharashtra Shipbuilding Policy 2025 offers 15 percent capital subsidy and aims for one third of national output by 2030.
- The project supports Maritime Amrit Kaal Vision 2047, which targets 4.5 million GT and top five global rank by 2047.
- Mazagon Dock, a Navratna PSU under the Ministry of Defence headquartered in Mumbai, traces its origin to 1774 and state takeover in 1960.
