In May 1962, Nanda was promoted to the acting rank of Rear Admiral and appointed Deputy Chief of Naval Staff. As DCNS, he was instrumental in obtaining permission and clearance from the Government of India (GOI) for the naval development of the port at Goa, which was recently annexed. Given the difficulty India had in negotiating the purchase of from the UK, Nanda supported the acquisition of equipment from the Soviet Union. Promoted to substantive rear-admiral on 16 June 1964, Nanda was appointed Managing Director of Mazagon Dock Limited in December 1964.