Mazagon Dock moves into merchant shipbuilding with ₹15,000-crore yard in Andhra’s Dugarajapatnam
MDL is to invest ₹15,000 crore over five to seven years and the project is expected to create 45,000 direct and indirect jobs
The Defence Ministry’s Navratna shipbuilder, Mazagon Dock Shipbuilders Limited (MDL), is set to establish a shipyard at Dugarajapatnam in Andhra Pradesh’s Tirupati district, capable of producing 1.2 million gross tonnes of merchant vessels annually. On September 18, 2026, MDL signed a Memorandum of Understanding (MoU) with the National Shipbuilding and Heavy Industries Park-Andhra Pradesh (NSHIP-AP).
The ₹15,000 crore investment from MDL over five to seven years is expected to generate approximately 45,000 direct and indirect jobs. The shipyard will construct tankers, bulk carriers, container ships, liquefied natural gas (LNG) carriers, and other specialised vessels for domestic and export markets. Andhra Pradesh aims to create a shipbuilding-cum-port cluster at Dugarajapatnam, with an estimated ₹29,254 crore for the shipyard and ₹9,513 crore for the port.
Prime Minister Narendra Modi’s vision of transforming India into one of the world’s top five shipbuilding nations by 2047 was highlighted by Chief Minister N. Chandrababu Naidu.
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