Centre scouts Tamil Nadu, Gujarat, Andhra for mega shipyards; HD Hyundai-Cochin Shipyard eye Thoothukudi for ₹10,000 cr project
New Delhi: The Centre has identified key coastal locations in Tamil Nadu, Gujarat, and Andhra Pradesh for setting up large-scale shipbuilding and repair facilities, in a move aimed at positioning India as a global hub in the sector, media reports said.
Among the initial projects being considered is a ₹10,000 crore mega shipyard in Thoothukudi, Tamil Nadu, where South Korea’s HD Hyundai is close to finalising a partnership with Cochin Shipyard Limited (CSL), officials confirmed.
“CSL and HD Hyundai are zeroing in on the location of this shipbuilding facility,” a senior official told The Economic Times, noting that Thoothukudi has emerged as the leading contender for the joint venture focused on building large vessels for international trade.
Although HD Hyundai stated that “nothing has been confirmed,” sources suggest a formal agreement may be reached soon. CSL has yet to issue any comment.
This development coincides with the finance ministry’s expenditure finance committee (EFC) concluding its appraisal of an ₹18,090 crore revised shipbuilding financial assistance policy.
It complements the ₹25,000 crore maritime development fund announced in the Union Budget for 2025–26, aimed at funding advanced shipyards with essential infrastructure such as breakwaters and capital dredging.
Beyond Thoothukudi, officials said coastal land in Gujarat and Andhra Pradesh is also being prepared to attract overseas investments.
Interest has already been shown by companies from France, the Netherlands, and the Middle East, as global players look to diversify their supply chains and reduce dependency on East Asian yards.
The broader strategy is part of the government’s ambition to lift India’s share in the global shipbuilding industry, currently below 1 percent.
New policy frameworks are targeting a spot in the top 10 shipbuilding nations by 2030 and a top 5 ranking by 2047.
Meanwhile, India is also boosting its shipping capabilities with the proposed Bharat Container Line, a national container carrier intended to cut down reliance on foreign-flagged vessels and strengthen India’s grip over its trade routes.
The shipbuilding incentive scheme, launched in December 2015 and applicable to contracts signed between April 2016 and March 2026, is also being expanded.
It has so far prioritised vessels powered by green fuels and those serving specialised functions, such as wind farm installation.
As India charts a course toward maritime resurgence, the potential HD Hyundai-CSL collaboration is likely to be the first in a series of joint ventures aimed at transforming the nation into a heavyweight in global maritime production and logistics.
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