Mazagon Dock Scouts Equity Partners for ₹20,000 Crore Shipbuilding Clusters in Two States

Mazagon Dock Shipbuilders is scouting equity partners for proposed ₹20,000 crore shipbuilding clusters at Dighi in Maharashtra and Dugarajapatnam in Andhra Pradesh, after signing ₹30,000 crore in memoranda of understanding with the two state governments. The company expects the requisite approvals by December, Chairman and Managing Director Captain (retired) Jagmohan told Business Standard.

How the Two Shipbuilding Clusters Would Work

The two MoUs, signed over three days, envisage clusters each capable of supporting an annual output of 1.2 million gross tonnage. "We will execute these in phases. The first phase will have a capacity of 500,000 GT. We expect an investment of ₹20,000 crore over the next five to seven years, with the Maritime Investment Fund (MIF) funding the equity component of the shipyard. To begin with, MDL will form a joint venture with the MIF, managed by SBI Ventures, with each holding a 50 per cent stake," Jagmohan said.

The MIF is a ₹20,000 crore equity fund under the ₹25,000 crore Maritime Development Fund, part of a ₹69,725 crore government package for the shipbuilding and maritime sector. Two dedicated project companies would sit under the main holding company, with operations and finances ring-fenced. MDL is in talks with large corporations that regularly use vessels to bring them on board as equity partners, and Jagmohan cited Petronet LNG's shareholder structure of public-sector oil companies and GAIL (India) as a model.

The investment would be financed with 70 per cent debt and 30 per cent equity, and MDL expects to need about ₹6,500 crore in equity across the two clusters. "If the investment is split 50:50, I have to spend around ₹3,000 crore. Our cash in hand can easily accommodate that investment. So, as far as the equity portion of the two shipyards is concerned, there is absolutely no problem," Jagmohan said. Investors from the US and Germany have expressed interest, and MDL is in talks with international maritime equipment manufacturers as co-investors. Jagmohan said MDL would not dilute its stake below 26 per cent, and the company is considering an initial public offering of the shipbuilding venture after the shipyard becomes operational.

Mazagon Dock's Defence Order Book and Revenue

According to akta.pro company records, Mazagon Dock is a Navratna defence PSU building warships, stealth frigates and submarines for the Indian Navy and Coast Guard. The same records put its order book at ₹20,535 crore as of March 31, 2026, with FY26 revenue of ₹12,839.64 crore, up 12.3 per cent from the previous fiscal year, and profit after tax of ₹2,435.77 crore.

Earlier Moves in Andhra Pradesh and Thoothukudi

In September 2026, Andhra Pradesh's shipbuilding plans drew commitments from Mazagon Dock and Goa Shipyard, with MDL investing ₹15,000 crore in the Dugarajapatnam cluster and GSL committing ₹8,000 crore for a Machilipatnam facility, The Hindu reported. That same month, Mazagon Dock called off its Thoothukudi shipyard project after the Tamil Nadu government prioritized the site for HD Hyundai's larger-scale shipyard, BusinessLine reported.

December Approval Target for the Clusters

Jagmohan said the company expects to secure the requisite approvals for the two clusters by December.