MDL plans ₹5,000 crore infrastructure boost to double shipbuilding capacity

Team India Sentinels 4.21pm, Monday, July 14, 2025.

File photo of a warship being built at the MDL shipbuilding yard in Mumbai.

New Delhi: Mazagon Dockyard Shipbuilders Limited (MDL) is set to reclaim an additional 10 acres of land near its Mumbai facility as part of an ambitious ₹5,000 crore infrastructure expansion programme designed to significantly enhance India’s naval shipbuilding capabilities.

The state-owned defence public sector undertaking will establish two additional construction basins on the reclaimed land, marking a substantial step forward in the country’s efforts to bolster indigenous naval manufacturing capacity amid evolving regional security dynamics.

Strategic Land Acquisition Programme

The latest land reclamation initiative builds upon MDL’s acquisition of a 14.55-acre parcel from Mumbai Port Authority in April 2024, secured for ₹354 crore on a long-term lease basis. This earlier acquisition has already enabled the decongestion of the existing shipyard space, allowing for more efficient operations.

Beyond the immediate expansion, MDL has also acquired 37 acres at Nhava Sheva Port for approximately ₹3,000 crore, positioning the company to address future infrastructure constraints comprehensively. A senior official at the shipbuilding firm indicated that this acquisition would make MDL “future proof with respect to infrastructure constraints.”

Capacity Enhancement Targets

The infrastructure development programme is expected to dramatically increase MDL’s shipbuilding capacity. Currently operating with a deadweight tonnage of 40,000 metric tonnes, the planned neighbourhood infrastructure will double this capacity to 80,000 metric tonnes. Once the Nhava Sheva facility becomes operational, the total capacity could reach 200,000 metric tonnes.

The expansion comes at a crucial time as MDL prepares to sign twin submarine building projects worth ₹1.06 lakh crore. The company currently maintains capacity to construct 11 submarines and 10 warships simultaneously at its existing premises, but future construction requirements are expected to demand facilities capable of handling larger vessels with deeper drafts.

Naval Modernization Context

The infrastructure expansion aligns with India’s broader naval modernization strategy, particularly the Indian Navy’s ambitious 175 capital ship programme. This initiative represents a significant component of India’s response to the changing maritime security landscape in the Indo-Pacific region.

The expansion gains additional strategic significance when viewed against China’s formidable shipbuilding capabilities. The People’s Liberation Army Navy currently operates a fleet exceeding 370 ships, surpassing even the United States Navy in numerical strength. India’s shipbuilding capacity enhancement across domestic yards, including MDL’s expansion, represents a measured response to this regional naval build-up.

MDL’s recent infrastructure additions include the Kanhoji Angre wet basin, which can accommodate two frigates and two submarines for outfitting simultaneously. This facility represents the latest major infrastructure addition in the company’s modernization programme.

With a distinguished history dating back to 1774, Mazagon Dockyard has constructed 806 vessels, including 214 platforms for other countries. For the Indian Navy specifically, the facility has delivered 31 capital warships and eight submarines, establishing itself as a cornerstone of India’s naval industrial base.

The defence ministry has emphasized that the expanded facilities will enable simultaneous construction and outfitting of new builds alongside repairs and refits of existing vessels, maximizing operational efficiency and reducing delivery timelines for critical naval platforms.


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