India identifies land for mega shipbuilding & repair centres—HD Hyundai & CSL in talks for ₹10,000 Cr project

The Centre has identified strategic coastal land in Tamil Nadu, Gujarat, and Andhra Pradesh to build mega shipbuilding and repair facilities.

More details about the mega shipbuilding and repair facilities

As reported, one of the first projects could be a Rs 10,000 crore mega shipyard in Thoothukudi, Tamil Nadu, with South Korea's HD Hyundai nearing a partnership with Cochin Shipyard Limited (CSL).

HD Hyundai is partnering with Cochin Shipyard Limited (CSL) to build large vessels, potentially investing ₹10,000 crore in Thoothukudi, Tamil Nadu.

"CSL and HD Hyundai are zeroing in on the location of this shipbuilding facility," a senior official told ET while adding that Thoothukudi in Tamil Nadu is expected to be finalised for this mega infrastructure project with an expected investment of around ₹10,000 crore by completion.

Responding to queries from ET on talks around partnership with CSL, HD Hyundai said, "Nothing has been confirmed."

CSL did not respond till press time.

This progress is close to the finance ministry's Expenditure Finance Committee (EFC) wrapping up appraisals for an enhanced shipbuilding financial assistance policy worth ₹18,090 crore, and a maritime development fund of ₹25,000 crore announced in Budget 2025-26.

Meanwhile, the other two land parcels are being offered for more international shipbuilding projects.

"Interest has been received from Netherlands, France, and Middle East-headquartered companies for setting up manufacturing facilities in India," the official disclosed.

India currently holds less than 1% of the global shipbuilding market, intending to break into the global top 10 ranking by 2030, and top five by 2047.

The government is strategising a multi-pronged approach with plans to procure state-owned ships and also getting a fillip.

National container shipping carrier, Bharat Container Line, is expected to reduce dependence on foreign-flagged vessels and strengthen India's control over foreign trade.

An existing financial assistance policy for domestic shipyards was introduced in December 2015 for shipbuilding contracts signed between April 1, 2016, and March 31, 2026.

It is to support the development of specialised vessels such as those for wind farm installations and those powered by green fuels.

Plans are also afoot to provide direct capital support to create the breakwater or shipyard protection infrastructure, along with capital dredging at shipyards.

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