MDL inks pact with Tamil Nadu to develop greenfield shipyard on east coast

Mazagon Dock Shipbuilders Limited (MDL), one of India’s premier defense shipyards, has taken a decisive step toward expanding its footprint to the country’s eastern seaboard. The Mumbai-based public sector undertaking has signed a memorandum of understanding (MoU) with Guidance Tamil Nadu, the state’s investment promotion agency, to explore the establishment of a new greenfield shipyard.

The agreement was formalized on September 19, 2025, at an event hosted by the Ministry of Ports, Shipping, and Waterways in Bhavnagar, Gujarat. It was signed by Biju George, Director (Shipbuilding) at MDL, and Dr. Darez Ahamed, Managing Director and CEO of Guidance Tamil Nadu.

Strategic expansion

MDL has long been at the heart of India’s naval shipbuilding efforts, constructing frontline warships and submarines for the Indian Navy. Its portfolio includes stealth frigates, destroyers, and the Scorpene-class submarines that form the backbone of the country’s undersea warfare capabilities.

The planned foray into Tamil Nadu marks MDL’s first significant move outside its western base in Mumbai. Industry observers say the decision underscores both the strategic importance of India’s east coast and the growing emphasis on distributed maritime infrastructure. The region is emerging as a focal point for defense logistics, trade connectivity, and blue economy projects, given its proximity to key shipping lanes in the Bay of Bengal.

Early-stage framework

Details about the proposed shipyard’s size, capacity, and investment commitments are yet to be disclosed. Under the framework of the MoU, MDL and Guidance Tamil Nadu will conduct feasibility studies, engage with stakeholders, and identify the operational and financial contours of the project. Officials indicated that consultations would cover aspects ranging from land allocation and connectivity to potential synergies with local industries and the defense ecosystem.

Broader significance

For Tamil Nadu, the collaboration represents a potential boost to its maritime and defence manufacturing ambitions. The state has been positioning itself as a hub for advanced industries, including aerospace, shipbuilding, and renewable energy. A partnership with MDL could strengthen its credentials as a preferred destination for strategic investments.

For MDL, the move signals a diversification of its production base at a time when the Indian Navy and Coast Guard are pursuing ambitious fleet expansion plans. Establishing a presence on both coasts would also allow the shipbuilder to better support India’s maritime security requirements and contribute to national initiatives such as Aatmanirbhar Bharat (self-reliant India) and the Maritime India Vision 2030.

While the shipyard’s eventual scale and role will depend on the outcome of the studies, the MoU positions MDL to play a larger role in shaping India’s east coast maritime infrastructure and strengthening the country’s strategic shipbuilding capabilities.