State-run Mazagon Dock Shipbuilders Ltd. has begun environmental studies for building a new yard at Nhava Island near Mumbai and also hopes to lease land from neighbouring Mumbai Port Trust to boost capacity for diversifying its product portfolio, a top company official said.

“We have taken a call on the Nhava Island project. We are working on developing it; we have started the environmental studies, which has been cleared by the Board. The land is in our possession,” Chairman and Managing Director Commodore Rakesh Anand, told BusinessLine.

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