India’s mega shipbuilding plans! HD Hyundai & Cochin Shipyard in talks for Rs 10,000 crore project

Centre has identified strategic coastal land in Tamil Nadu, Gujarat, and Andhra Pradesh to establish mega shipbuilding and repair facilities, marking a major push toward making India a global shipbuilding hub. 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), officials confirmed.“CSL and HD Hyundai are zeroing in on the location of this shipbuilding facility,” a senior official told ET, with Thoothukudi emerging as the front-runner for the joint venture aimed at manufacturing large vessels for intercontinental trade. While HD Hyundai responded that “nothing has been confirmed,” sources indicate that an agreement is likely to materialise soon. CSL has not commented on the development so far.The move comes as the finance ministry’s expenditure finance committee (EFC) wraps up appraisals for an Rs 18,090 crore enhanced shipbuilding financial assistance policy, alongside a Rs 25,000 crore maritime development fund announced in the Union Budget 2025-26. These policies aim to provide the capital support necessary for creating world-class shipyards, including breakwater protection and capital dredging infrastructure.In addition to Thoothukudi, land parcels in Gujarat and Andhra Pradesh are being positioned to attract international investments in shipbuilding. Officials revealed that interest has already been received from companies in France, the Netherlands, and the Middle East, as India opens its doors to global players seeking to diversify supply chains and reduce reliance on East Asian yards.The government’s efforts are part of a broader ambition to elevate India’s presence in the global shipbuilding market, where it currently holds less than 1 per cent share. New policy frameworks aim to propel India into the top 10 global shipbuilding nations by 2030, and into the top 5 by 2047.In parallel, India is also strengthening its shipping operations through Bharat Container Line, a proposed national container carrier designed to reduce reliance on foreign-flagged vessels and boost India’s control over outbound and inbound trade routes.The shipbuilding policy, first launched in December 2015, which offered incentives for contracts signed between April 2016 and March 2026, is also being expanded. It has so far focused on vessels with green fuel capabilities and specialised marine applications, such as wind farm installation ships.As India lays the foundation for a maritime revival, partnerships like the one between HD Hyundai and CSL are expected to be the first of several aimed at reshaping the country into a major player in global maritime manufacturing and logistics.