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India’s MDL Invests $5.8B in Dry Docks & Land Acquisitions to Boost Naval Shipbuilding

To expand its shipbuilding capacity, Mazagon Dock Shipbuilders (MDL), a major Indian defense shipyard, plans to reclaim land near its main plant in Mumbai.

The news about land reclamation to expand production capacity has been confirmed by MDL executives, who said: “In addition to the 15 acres of land previously acquired near MDL, the company is planning to reclaim land covering an area of 10 acres.”

It is reported that MDL plans to invest between 400 billion rupees (approximately US$4.66 billion) and 500 billion rupees (approximately US$5.825 billion) in infrastructure upgrades, including the construction of two new dry docks. Recently, the shipyard added a Kanhoji Angre floating dry dock, which is said to be capable of accommodating two frigates and two submarines for outfitting operations.

To increase its shipbuilding capacity, MDL has previously acquired a 15-acre plot of land from the Mumbai Port Authority (MPA), effective April 1, 2024. The plot is adjacent to the south side of MDL, and the total acquisition cost is approximately 3.54 billion rupees (approximately US$41 million). According to the Indian Ministry of Defense, the plot will be used for new ship construction and repair/refit projects of various types of ships to increase the shipyard’s capacity.

In addition, MDL spent approximately 3 billion rupees (approximately US$0.35 billion) to acquire a 37-acre plot of land near Nhava Sheva Port.

Currently, MDL has a maximum shipbuilding capacity of 40,000 tons. With the completion of surrounding infrastructure projects, this capacity can be increased to 80,000 deadweight tons. Once the shipyard near Nhava Sheva Port becomes operational, it will be able to meet the shipbuilding needs of vessels with a deadweight tonnage of 200,000 tons.

As India’s main defense shipyard, MDL was founded in 1774 and taken over by the Indian government in 1960. It is renowned for building warships, submarines, and destroyers for the Indian Navy, having delivered over 800 vessels to date.

Currently, MDL has the capacity to build 11 submarines and 10 warships simultaneously at its existing shipyard, including destroyers with a length of nearly 150 meters. Future construction demand is expected to match the planned shipbuilding facilities.

Previous reports indicate that MDL is expected to sign two submarine construction projects, involving the Project 75-India and an add-on project which the MDL completed in January this year, with a total cost estimated at over 1.06 trillion rupees (approximately US$12.35 billion).

Currently, India has 61 warships under construction, with another 17 warships and 9 submarines to be approved soon. The Indian Navy plans to build a 175 capital ship navy, and considering the geopolitical situation, MDL and other defense and private shipyards are expected to play an important role.

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