Mazagon Dock clarifies why Thoothukudi shipyard plan was dropped
Mazagon Dock explains why it dropped the Thoothukudi shipyard plan and reveals its new focus on Maharashtra and Andhra Pradesh clusters.
Mazagon Dock Shipbuilders Ltd (MDL) has officially clarified the reasons behind its decision to halt the proposed greenfield shipyard project at Thoothukudi, Tamil Nadu. The company addressed recent media reports suggesting a withdrawal, explaining that the shift was due to a strategic decision made by the joint venture (JV) responsible for the local shipbuilding cluster.
The Shift in Strategy
According to an official statement from MDL, the company had previously explored the possibility of developing a massive greenfield shipyard in Thoothukudi. However, the project did not move forward because the joint venture—formed by a Tamil Nadu state government entity and the V.O. Chidambaranar Port Authority—opted to select a different facility to serve as the Anchor Shipyard for that specific cluster.
An anchor shipyard plays a critical role in a greenfield shipbuilding cluster. It serves as the primary, leading facility that drives regional development, constructs large-scale vessels, and acts as a magnet for ancillary manufacturing and repair industries.
A Massive Investment on the Table
The scale of the proposed project in Tamil Nadu was significant. In September 2025, Mazagon Dock had signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to establish the shipyard. The estimated investment for the Thoothukudi venture was projected to be between Rs 15,000 crore and Rs 18,000 crore.
New Focus: Maharashtra and Andhra Pradesh
While the Thoothukudi project has been sidelined, MDL is not slowing down its expansion. Instead, the company is redirecting its energy toward two major Greenfield Shipbuilding Industrial Clusters under the Maritime Amrit Kaal Vision (MAKV) 2047.
MDL has been officially selected as the Anchor Shipyard for the following locations:
- Dighi, Maharashtra
- Dugarajapatnam, Andhra Pradesh
By securing these roles, MDL will lead the development of these new maritime hubs, focusing on large-scale vessel construction and fostering industrial growth in these two states.
On Thursday, Mazagon Dock Shipbuilders Ltd (MDL) saw its share price close at Rs 2058.70 on the National Stock Exchange (NSE).