Mazagon Dock Shipbuilders Signs ₹15,000 Crore MoU for Greenfield Shipyard in Andhra Pradesh

Mazagon Dock Shipbuilders Limited (MDL) has signed a Memorandum of Understanding (MoU) with National Shipbuilding and Heavy Industries Park-AP (NSHIP-AP) to develop a greenfield shipyard at Dugarajapatnam in Andhra Pradesh. The company plans to invest around ₹15,000 crore in the proposed facility, which is expected to strengthen its shipbuilding capacity and expand its presence in commercial and large-scale shipbuilding. 

The MoU was signed on September 18, 2026, in the presence of Andhra Pradesh Chief Minister N Chandrababu Naidu. MDL has been identified as the anchor shipyard for the proposed shipbuilding cluster. 

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MDL Plans ₹15,000 Crore Investment

The proposed greenfield shipyard is planned with a design capacity of 1.2 million gross tonnes per annum. MDL said the project is expected to generate around 45,000 direct and indirect jobs once developed. 

The investment forms part of a broader shipbuilding and port cluster planned at Dugarajapatnam. According to the project's Techno-Economic Feasibility Report, the wider shipbuilding and ship-repair yard has been estimated at around ₹29,254 crore, while the associated port component is estimated at approximately ₹9,513 crore. 

These figures refer to the broader project infrastructure and should not be read as MDL's investment commitment, which has been stated at around ₹15,000 crore. 

MDL to Anchor Proposed Shipbuilding Cluster

Under the proposed arrangement, MDL will serve as the anchor shipyard within the cluster. The project is being developed with participation from NSHIP-AP, a special purpose vehicle associated with the Andhra Pradesh Maritime Board and Visakhapatnam Port Authority. 

The proposed cluster is intended to bring together shipbuilding, ship repair and port infrastructure. Such a model could allow supporting manufacturing and maritime businesses to develop around the main shipyard, although the scale and timing of the eventual economic impact will depend on project execution and infrastructure development. 

The MoU was signed by MDL Chairman and Managing Director Capt. Jagmohan (Retd.) and NSHIP-AP Managing Director Praveen Adhithya C.V. 

Project Linked to India's Shipbuilding Expansion

The Dugarajapatnam project comes as the Indian government seeks to expand domestic shipbuilding capacity and develop larger maritime clusters. 

The project is being pursued under the Government of India's Shipbuilding Development Scheme (SbDS). The proposed port is expected to be developed by the Government of India, while the state government is involved in developing the supporting infrastructure for the cluster. 

Andhra Pradesh Chief Minister N Chandrababu Naidu has said the state aims to contribute to India's ambition of becoming one of the world's top five shipbuilding nations by 2047. 

For MDL, the proposed facility would add capacity beyond its existing operations and could provide a platform for larger shipbuilding opportunities over the longer term. The company has previously discussed the need for large-scale shipyards with capacity of around one million to 1.5 million gross tonnes as part of India's planned shipbuilding clusters. 

What the Investment Means for Mazagon Dock

The proposed ₹15,000-crore investment represents a significant long-term capacity expansion for MDL. However, the project is at the MoU stage, meaning the investment should be viewed as a planned development rather than an immediate addition to the company's operational capacity. 

Execution will depend on factors including project approvals, land and waterfront infrastructure, construction timelines and demand for shipbuilding capacity. 

MDL's existing business continues to be centred on defence shipbuilding and related maritime activities. Its latest investor disclosures for FY2026-27 are available through the company's investor-relations section, while its current tender and business-opportunity disclosures show ongoing activity across naval and maritime projects. 

The Dugarajapatnam MoU therefore marks a proposed expansion of MDL's long-term infrastructure footprint, while the actual financial contribution from the new facility will depend on its development and eventual commissioning. 

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should evaluate the company's financial performance, valuation, project execution risks and other relevant factors before making investment decisions.