Mazagon Dock Hunts Equity Partners for Rs 20,000-Crore Shipbuilding Hubs

Mazagon Dock Shipbuilders is scouting equity partners for two planned greenfield shipbuilding clusters at Dighi in Maharashtra and Dugarajapatnam in Andhra Pradesh, as the state-run defence yard pushes into commercial ship construction with a proposed investment of about Rs 20,000 crore over five to seven years. The move marks a shift in scale for a company best known for warships and submarines, and it will build out the industrial base that feeds India’s shipbuilding supply chain.

MDL signed memoranda of understanding worth roughly Rs 30,000 crore with the two state governments within a span of three days, and expects to secure the required approvals by December, chairman and managing director Captain (retired) Jagmohan said in an interaction.

Each cluster is designed to support an annual output of 1.2 million gross tonnage. The plan will be executed in phases, starting with a first phase capacity of 500,000 GT.

A cluster of this size pulls in far more than a slipway. It implies demand for steel plate and sections, marine engines and propulsion systems, deck machinery, piping, electrical and automation packages, cranes and heavy handling equipment — much of it sourced domestically at present only in part, which is where ancillaries and component makers are expected to plug in.

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