Mazagon Dock Shipbuilders (MDL), India's premier defence shipbuilder, is actively seeking equity investors for two large commercial shipbuilding clusters as it moves to diversify beyond warships and submarines into the commercial maritime manufacturing space. Chairman and Managing Director Captain (retired) Jagmohan confirmed that MDL has signed memoranda of understanding worth ₹30,000 crore with the Maharashtra and Andhra Pradesh governments for clusters at Dighi in Raigad district and Dugarajapatnam in Andhra Pradesh, with final approvals targeted by December 2026 .
Each cluster is planned to support an annual output of 1.2 million gross tonnage (GT), developed in phases with the first stage at each location designed for 500,000 GT. The overall investment is expected to be ₹20,000 crore per cluster, spread over five to seven years . MDL will establish two dedicated project companies under a holding structure, with operations and accounts ring-fenced to keep the ventures financially distinct while maintaining strategic control at the parent level .
The financing structure relies heavily on the government's Maritime Development Fund (MDF), a ₹25,000 crore corpus announced as part of a broader ₹69,725 crore package to revitalize India's shipbuilding sector. The equity component will come from the ₹20,000 crore Maritime Investment Fund (MIF), managed by SBI Ventures, with MDL and the MIF each holding a 50% stake in a joint venture . The overall funding mix envisages 70% debt and 30% equity, with the equity requirement across both clusters estimated at approximately ₹6,500 crore .
Jagmohan addressed concerns about MDL's financial capacity to undertake two large projects simultaneously, stating that the company's balance sheet can comfortably accommodate its share. "If the investment is split 50:50, I have to spend around ₹3,000 crore. Our cash in hand can easily accommodate that investment," he said, adding that there was no concern on the equity side . MDL has emerged as the sole bidder to serve as anchor investor in both clusters, but the harder task lies in closing the remaining financing gap.
The company is in discussions with large corporations that regularly use vessels for trade and logistics, seeking to bring them in as equity partners in a structure Jagmohan compared to Petronet LNG, where multiple public-sector shareholders anchor a large infrastructure venture . Investors from the US and Germany have already expressed interest, and MDL is also in talks with international maritime equipment manufacturers for co-investment. However, Jagmohan set a clear boundary: MDL's stake will not fall below 26% at any stage, ensuring strategic control remains anchored in Indian hands .
The Dighi project in Maharashtra has already advanced significantly, with MDL signing a memorandum of understanding with National Shipbuilding & Heavy Industries Park Maharashtra Limited (NSHIPML) in September 2026 to serve as anchor shipyard, committing approximately ₹15,000 crore for a facility with at least 1.2 million GT annual capacity . The Dighi cluster is being developed by NSHIPML, an equal special-purpose vehicle of the Maharashtra Maritime Board and Mumbai Port Authority, under the Centre's Greenfield Shipbuilding Cluster Development Plan .
These projects sit within India's broader ambition to become one of the world's top five shipbuilding nations by 2047, with a targeted annual output of around 4.5 million GT. The government has approved a comprehensive package including the Shipbuilding Financial Assistance Scheme (₹24,736 crore) to address cost disadvantages against global yards, and the Shipbuilding Development Scheme (₹19,989 crore) to support greenfield clusters . For MDL, the commercial shipbuilding foray represents a strategic expansion beyond its established defence business, leveraging its engineering and project management expertise into a sector where India currently holds a negligible share of global orders.
Note: The original title stated "₹20,000 crore" for the hub. Search results indicate the ₹20,000 crore figure applies per cluster, with the combined investment across both Dighi and Dugarajapatnam substantially higher. The title has been retained as provided but the article clarifies the actual investment structure.