Mumbai: Mazagon Dock Shipbuilders Ltd (MDL) will invest around Rs 27,000 crore to develop a greenfield shipbuilding cluster at Dighi Port in Maharashtra’s Raigad district, a project expected to create about 90,000 jobs, the state government said on Tuesday.

The defence public sector undertaking signed a memorandum of understanding (MoU) with National Shipbuilding and Heavy Industries Park Maharashtra Ltd (NSHIPML) for the project in the presence of Chief Minister Devendra Fadnavis, according to an official release.

Under the agreement, MDL has set a target of achieving an annual shipbuilding capacity of at least 2 million gross tonnes at Dighi. The facility is expected to support the construction of large commercial vessels and strengthen India’s maritime industrial capabilities.

The greenfield cluster is being jointly developed by the Maharashtra Maritime Board and Mumbai Port Authority through NSHIPML, a special-purpose company created for the project.

The initiative is being implemented under the Centre’s Greenfield Shipbuilding Cluster Development Plan and is expected to contribute to the objectives of Maritime Amrit Kaal Vision 2047.

According to the state government, the Dighi project will create modern shipbuilding infrastructure along with an industrial and supply-chain ecosystem. It is expected to expand domestic shipbuilding capacity, attract technology and investment, generate skilled employment and improve India’s competitiveness in the global maritime industry.

Warships and commercial vessels

The proposed facility, which Fadnavis described as India’s largest shipyard, will manufacture both warships and commercial vessels. It will also undertake shipbuilding, shipbreaking, ship recycling and ship repair activities.

"The Centre and the state government together will create the country's biggest shipyard, where both warships and commercial ships will be manufactured," Fadnavis stated.

The chief minister said the project would create around 15,000 direct jobs and 75,000 indirect employment opportunities.

He also said the facility would help Maharashtra account for around 40 per cent of the shipbuilding capacity envisaged under the country’s maritime development plans.

"This is a very big agreement for Konkan (coastal region where Dighi is located) and Maharashtra," Fadnavis said, while congratulating state minister Nitesh Rane, who holds the ports portfolio, for his efforts in taking the project forward.

Project to be completed in three years

Work on the shipyard will begin after the necessary permissions are secured, and the project is expected to take around three years to complete, Fadnavis said.

MDL Chairman and Managing Director Captain Jagmohan said the company would work with all stakeholders to establish a modern and globally competitive shipbuilding facility at Dighi.

Jagmohan signed the MoU with NSHIPML Managing Director Pradeep P, the release said.