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Mazagon Dock Opens ₹22.5 Crore Engineering Tender for Two Proposed Indian Shipyards

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Mazagon Dock Shipbuilders has moved its proposed Dighi and Dugarajapatnam greenfield shipyards beyond the memorandum-of-understanding stage by issuing a single competitive tender for detailed project reports covering both developments. GeM bid GEM/2026/B/8178491, dated October 19, carries an estimated procurement value of ₹225 million, or ₹22.5 crore, and a contract period of six months and two days. The two DPRs cover Dugarajapatnam in Andhra Pradesh and Dighi in Maharashtra, where MDL has separately announced plans for approximately ₹15,000 crore of investment and 1.2 million GT of annual shipbuilding capacity at each location. The consultancy procurement is not a construction award, but it represents a significant transition from political and corporate commitments toward engineering, costing and implementation planning.

SHIPYARD EXECUTION MILESTONE | OCTOBER 2026

One Tender. Two Coasts. Two Potential 1.2-Million-GT Shipyards.

MDL is commissioning the engineering work needed to turn two recent anchor-shipyard agreements into costed, technically defined projects.

DUGARAJAPATNAMEast Coast | Andhra Pradesh

3,488-acre cluster · ~2.1 km waterfront · planned 13–15 m depth · tankers, bulkers, containerships, LNG carriers and specialised vessels.

DIGHIWest Coast | Maharashtra

2,000-acre cluster · ~3 km waterfront · planned 14 m depth · large-scale commercial shipbuilding and associated supplier ecosystem.

₹22.5CrEstimated DPR tender value
6 mo. + 2dConsultancy period
₹30,000CrCombined MDL MoU investment indications
2.4M GT/yrCombined stated design capacity
Why this matters: an MoU expresses intent. A DPR has to convert that intent into layouts, infrastructure, cost estimates, financing assumptions, environmental requirements, implementation schedules and a buildable project.

The Engineering Questions the DPRs Now Have to Answer

India's Shipbuilding Development Scheme defines the DPR as the principal document used to establish technical feasibility, costs, funding, environmental requirements and implementation strategy.

ParameterDugarajapatnamDighiWhat Engineering Must Resolve
Land3,488 acres2,000 acresShipyard footprint, ancillary zones, fabrication areas, storage, utilities and worker infrastructure.
Waterfront~2.1 km~3.0 kmDry docks, slipways, shiplifts, outfitting berths, launch arrangements and basin layout.
Planned Depth13–15 m post-dredging14 m post-dredgingCapital dredging, approach channels, turning basins, maintenance dredging and sediment management.
MDL Capacity Vision1.2M GT/year≥1.2M GT/yearNumber and size of building positions, block throughput, crane capacity and production flow.
MDL Investment Indication~₹15,000 crore~₹15,000 croreProject phasing, capex schedule, funding structure and what infrastructure belongs to MDL versus the cluster SPV.
Commercial FocusTankers, bulkers, containers, LNG carriers, specialised shipsLarge commercial vesselsDesign vessel envelope and whether facilities are optimized for one segment or multiple classes.
Cluster SPVAPMB + Visakhapatnam Port AuthorityMaharashtra Maritime Board + Mumbai Port AuthorityInterface between publicly funded common infrastructure and MDL's yard-specific assets.
Marine WorksBreakwaters, channels, basins, reclamation, dredging and coastal protection.
Production SystemDry docks, shiplifts, panel lines, block fabrication, cranes, workshops and outfitting flow.
Business CaseCost estimates, financing, implementation milestones, capacity utilization and risk.

How Much of India's Shipbuilding Target Could These Two Yards Represent?

Test different implementation outcomes against India's 4.5-million-GT annual shipbuilding objective.

2.40M GTModeled annual capacity
53.3%Share of 4.5M-GT national target
₹30,000CrAssociated MDL investment indications
0 GTIndia target: 4.5M GT/year
Full two-coast build: the two MDL projects alone would represent more than half of the government's stated national annual shipbuilding objective on a design-capacity basis.
Scenario model only. Design capacity is not actual ship output. Investment figures are MDL's MoU indications and remain subject to DPRs, approvals, financing, construction and market demand.
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