Admiral Dhowan, 59, who has been the acting Navy chief since Joshi's exit, has been appointed the Chief of Navy Staff superseding Western Naval Commander Shekhar Sinha.
He will have a tenure of 25 months, retiring in May 2016.
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Joshi, who had 15 months left in service, resigned on February 26 following the mishap involving submarine INS Sindhuratna in which two Navy officers were killed and several others were injured.
In August last year, submarine INS Sindhurakshak sank at the Naval Dockyard in Mumbai, killing 18 personnel on board.
The sudden resignation by Joshi changed the line of succession in the Navy.
Had he retired in August next year as per his tenure, Southern Naval Commander Vice Admiral Satish Soni would have become the next chief.
Under the new circumstances, National Defence College Commandant Vice Admiral Sunil Lamba is expected to succeed Dhowan in May 2016.
Dhowan, who is the 22nd Navy chief, has taken over the reins of the force at a time when it is grappling with mishaps involving its warships and other assets.
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