Indian media, citing M. Angamuthu, Chairman of the Mumbai Port Authority, reported that the government of Maharashtra state has “all but finalized” the site for a major shipbuilding industrial cluster. The cluster is to be located south of Dighi Port, a private facility operated by Adani Ports and Special Economic Zone Ltd (APSEZ). A consultancy firm is reportedly preparing a detailed feasibility study for the Dighi shipbuilding cluster project.
The reports indicate that the proposed large-scale shipbuilding cluster entails a total investment exceeding 200 billion Indian rupees (approximately US$2.08 billion), with the state-owned shipbuilder Mazagon Dock Shipbuilders (MDL) set to serve as the cluster’s anchor shipyard.
A single shipbuilding industry cluster may host one or more shipyards, with a total annual shipbuilding capacity of approximately 1.2 million gross tons (GT). The project’s special purpose entity (SPE) must secure investment commitments from one or more core shipyards to establish shipbuilding facilities within the cluster; these core shipyards must have a designed annual capacity of no less than 500,000 gross tons and must reach full production capacity within ten years of commencing operations.
Once a core shipyard is selected, the shipbuilding cluster will receive financial support under India’s “Shipbuilding Development Scheme.” The central government has allocated 198.99 billion Indian rupees(approximately US$2.069 billion) for the scheme—approved by the Union Cabinet in 2025—to develop three to four new shipbuilding clusters, with a limit of one per state. India plans to increase its shipbuilding output fortyfold by 2037, reaching 4.5 million gross tons.
India’s “Shipbuilding Development Plan” will provide full financial support in the form of grants to eligible projects, covering construction elements such as breakwaters, dry docks, and wave attenuators; development of navigation channels and harbor basins; land reclamation and site grading; regional centers for shipbuilding capacity development; shared maritime assets (barges, floating cranes, etc.); and on-site infrastructure.
According to the scheme’s implementation guidelines, state governments in India are required to transfer land designated for proposed shipbuilding clusters to a Special Purpose Vehicle (SPV) at a nominal price of one rupee; if no such land is available, the state government must acquire it at its own expense.
As reported, the shipbuilding industry clusters being developed in India refer to comprehensive ship repair and construction industrial parks equipped with advanced facilities and ready for immediate production. Each shipbuilding cluster will include approximately 2 kilometers of shoreline and about 2,000 acres of land area, with the shipyard and the supporting shipbuilding industrial park each occupying 1,000 acres, along with on-site transportation, residential facilities, and shared public utilities.
The marine equipment industry includes the manufacture of marine main engines, steel and components, suppliers of marine machinery, equipment, and systems, as well as other upstream and downstream enterprises that support shipbuilding and ship repair processes and enhance the overall value chain.