LSN News › India

World · India Bureau

Mazagon Dock to build ₹15,000-crore commercial shipyard in Andhra Pradesh

The defence shipbuilder plans to establish a major facility at Dugarajapatnam to expand into merchant vessel construction. The project is expected to generate tens of thousands of jobs over the next five to seven years.

LSN India · 18 September 2026

Mazagon Dock to build ₹15,000-crore commercial shipyard in Andhra Pradesh

Mazagon Dock Limited (MDL), India's premier defence shipbuilding company, is poised to enter the commercial shipbuilding sector with an ambitious ₹15,000-crore facility in Andhra Pradesh's Dugarajapatnam. The investment represents a significant diversification strategy for the Mumbai-headquartered public sector undertaking, which has traditionally focused on naval vessel construction.

The Andhra Pradesh yard will be developed over a five to seven-year timeframe, positioning MDL to compete in the growing merchant shipbuilding market. The facility is expected to generate approximately 45,000 direct and indirect employment opportunities, providing a substantial boost to the local economy and contributing to India's shipbuilding capacity.

The expansion into commercial shipbuilding aligns with India's broader maritime ambitions and the government's focus on developing domestic industrial capabilities. Dugarajapatnam's coastal location offers strategic advantages for vessel construction and launch operations, making it an ideal site for the facility.

MDL's move into merchant shipbuilding reflects growing domestic demand for commercial vessels and India's efforts to reduce reliance on foreign shipyards. The project underscores the company's commitment to leveraging its technical expertise and infrastructure to serve the commercial shipping industry while maintaining its core defence manufacturing operations.