State-run Mazagon Dock Shipbuilders Ltd (MDL) on Thursday (March 21) said the company will lease a land parcel measuring 14.55 acres from the Mumbai Port Authority (MbPA) for its Mumbai yard.
MDL's board approved the offer from MbPA, paving the way for the acquisition of the land on a long-term lease basis.
"We hereby inform that the Board of Mazagon Dock Shipbuilders Ltd (MDL), in the Board Meeting held on 20.03.2024, has accepted the offer of Mumbai Port Authority (MbPA) for the allotment of land and building (Workshop land and Clark Basin), measuring 14.55 acres, adjacent to MDL Mumbai Yard on long term lease basis to MDL for 29 years w.e.f. 01.04.2024 to 31.03.2053," the company said.
The allotment, effective from April 1, 2024, until March 31, 2053, comes at a total cost of approximately ₹354 crore, MDL said in a regulatory filing.
This cost encompasses various components, including the upfront lease premium, expenses related to buildings and structures, as well as GST, stamp duty, and registration charges. MDL is set to make payments towards the allotment cost to MbPA in due course.
Shares of Mazagon Dock Shipbuilders Ltd ended at ₹1,881, up by ₹40, or 2.17% on the BSE.
