Mazagon Dock Shipbuilders (MDL) signed a memorandum of understanding (MoU) with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) on Friday, September 18, to develop a greenfield shipyard at Dugarajapatnam in Andhra Pradesh, with the company envisaging an investment of around ₹15,000 crore over the next five to seven years. The MoU was signed in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu by MDL Chairman and Managing Director Capt. Jagmohan (Retd.) and NSHIP-AP Managing Director Praveen Adhithya C.V. MDL has been identified as the anchor shipyard for the proposed shipbuilding cluster, with the project subject to requisite approvals and clearances. The company's Director (Finance) Ruchir Agrawal revealed that the company is looking at an investment of up to ₹15,000 crore in a shipyard in Maharashtra, with the company targeting 15-17% returns from the proposed investment and expecting a binding agreement soon. Shares of Mazagon Dock ended nearly 2% higher at ₹2,252 on Friday, snapping a six-session losing streak.
Mazagon Dock Shipbuilders Ltd (MDL) has announced a landmark investment of ₹15,000 crore to establish a modern greenfield shipyard at Dugarajapatnam in Andhra Pradesh. The proposed shipyard will have a design capacity of 1.2 million gross tonnage per annum with scope for further expansion based on market requirements. The project is being developed under the Government of India's Shipbuilding Development Scheme (SbDS) and will build commercial vessels including tankers, bulk carriers, container ships, LNG carriers and other large specialised vessels. The Andhra Pradesh government is planning a broader Shipbuilding-cum-Port Cluster at Dugarajapatnam, with the shipbuilding and ship repair yard estimated to cost around ₹29,254 crore and the port at ₹9,513 crore according to the Techno-Economic Feasibility Report. The port is proposed to be developed by the Government of India.
The ambitious project is expected to generate direct and indirect employment for around 45,000 people in Andhra Pradesh, as announced by Chief Minister Chandrababu Naidu. The Andhra Pradesh government's techno-economic feasibility report estimates the shipbuilding and ship-repair yard at approximately ₹29,254 crore and the port at ₹9,513 crore. The cluster is being developed under the Government of India's Shipbuilding Development Scheme (SbDS) and NSHIP-AP, a special purpose vehicle formed jointly by the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority, has identified MDL as the anchor shipyard. The proposed shipyard will manufacture both warships and commercial ships, besides undertaking shipbuilding, shipbreaking, ship recycling and ship repair activities. The CM informed that the project would help Andhra Pradesh create around 40% of the shipbuilding capacity envisaged under the country's maritime development plans. The greenfield shipbuilding-cum-port cluster is expected to take around three years for completion after obtaining necessary permissions.
The project is being taken forward under the Centre's Greenfield Shipbuilding Cluster Development Plan and is expected to complement the objectives of the Maritime Amrit Kaal Vision 2047. Chief Minister Chandrababu Naidu stated that Andhra Pradesh was committed to being at the forefront of India's ambition to become one of the world's top five shipbuilding nations by 2047, leveraging the state's long coastline, strategic location and industrial ecosystem. Capt. Jagmohan said Dugarajapatnam offers the scale and maritime potential required for a globally competitive shipyard and that MDL intends to develop a facility serving both domestic and international markets. The development of the shipbuilding cluster at Dugarajapatnam, with MDL as the anchor shipyard, will position Andhra Pradesh as a major shipbuilding hub and attract a strong ecosystem of ancillary industries and investments to the State. MDL said the project would mark a step towards its diversification into large-scale commercial shipbuilding, while also supporting the development of an ancillary and marine engineering ecosystem.
The Andhra Pradesh project comes as MDL is also expecting a significant pipeline of naval orders. Ruchir Agrawal, Director-Finance at MDL, recently told CNBC-TV18 that the company's order book could cross ₹1 lakh crore in FY27 if anticipated submarine and naval vessel orders come through, with its current order book standing at under ₹18,000 crore. Agrawal said the company expects 15-17% revenue growth in the current financial year. The P-75I submarine programme, being executed with Germany's ThyssenKrupp Marine Systems (TKMS), remains one of the key potential orders for MDL, with the company expecting the government to award the order during the current financial year, although it has not provided a firm timeline. The stock had declined for six consecutive sessions before Friday's gains, with the company recently winning an order worth ₹118 crore from the Maharashtra State Electricity Transmission Company Ltd (MSETCL) to supply, install and commission an AI-based comprehensive infrasecure project for five substations, estimated to be completed in 24 months.
