Maharashtra Picks Dighi, Raigad for ₹20,000 Crore Greenfield Shipbuilding Cluster; Mazagon Dock to Anchor

Manufacturing Jun 30,2026

The Maharashtra government has selected Dighi in Raigad district as the site for a proposed ₹20,000-crore greenfield shipbuilding cluster, aimed at establishing a major maritime manufacturing hub in the state. Mazagon Dock Shipbuilders Limited (MDL), a Navratna public sector undertaking under the Ministry of Defence, is likely to anchor the project.

The cluster is planned across roughly 2,550 acres within the larger Dighi Port Industrial Area, which spans more than 6,000 acres and offers multimodal road and rail connectivity. The integrated facility is envisaged to include shipyards, ship repair facilities, marine equipment manufacturing units and supporting infrastructure.

Mumbai Port Authority and the Government of Maharashtra have formed an equal special purpose vehicle (SPV) to develop the project. Dighi was chosen over other evaluated sites, including Nandgaon and Vijaydurg, following a techno-economic feasibility study, with its proximity to port infrastructure and available industrial land cited as key factors.

The project forms part of Maharashtra's broader plan to develop six marine shipyard clusters along its 877-km coastline, under the state's Shipbuilding, Ship Repair and Ship Recycling Policy introduced in 2025. The policy offers a 15% capital subsidy, R&D incentives of up to ₹25 crore, and concessional land leases to attract private shipbuilding players.

The initiative is backed by the central government's Shipbuilding Development Scheme and is expected to draw significant investment and generate large-scale employment. MDL, which builds warships and submarines for the Indian Navy alongside tankers, bulk carriers, passenger ships and ferries, has been exploring expansion into large-scale commercial shipbuilding, including potential partnerships with South Korean or Japanese firms.

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