India, Korea Ink Landmark Pact For First Mega Greenfield Shipyard In Thoothukudi

In a major boost to India’s shipbuilding ambitions, the government has formalised a three‑way agreement combining South Korean technology, central support and Tamil Nadu’s new shipbuilding SPV to create a world‑class yard at Thoothukudi. The project is anchored in the Maritime Amrit Kaal Vision 2047 to place India among the world’s top shipbuilding nations.

What The MoU Covers

The MoU brings together HD KSOE, NSHIP‑TN (a 50:50 SPV of VO Chidambaranar Port Authority and SIPCOT) and Sagarmala Finance Corporation under the Ministry of Ports, Shipping and Waterways. It provides the framework for joint development, financing, construction and operation of the mega shipyard on Tamil Nadu’s southern coast.

The agreement was signed in New Delhi on 20 April 2026 during South Korean President Lee Jae‑myung’s state visit, underscoring the strategic maritime partnership between the two countries.

Capacity, Investment And Design

The Thoothukudi greenfield shipyard is envisaged with an initial annual capacity of about 2.5 million gross tonnage (GT), with plans to scale further in line with demand.

Industry estimates, based on HD Hyundai’s broader plans, place potential project cost in the region of USD 4 billion, with a digital‑first design and advanced automation to handle large commercial vessels.

Shipbuilding Cluster And Employment

The shipyard will anchor a wider shipbuilding and heavy‑industries park at Thoothukudi, spread over roughly 2,000–3,000 acres with about 2 km of waterfront, hosting ancillary units, suppliers and service providers.

The mega facility and its ecosystem are expected to generate around 15,000 direct and indirect jobs in the initial phases, with further employment as the cluster matures.

Maritime Vision And Subsidy Support

The project is part of the Shipbuilding Development Scheme and Maritime Amrit Kaal Vision 2047, which aim to make India a top‑five shipbuilding nation by mid‑century.

Support measures include central and state‑level infrastructure grants, equity participation via Sagarmala-linked funds, state land and subsidy support, and eligibility for national shipbuilding incentives.

Thoothukudi Shipyard Highlights

• Tripartite MoU among HD KSOE, NSHIP‑TN and Sagarmala Finance Corporation
• Planned ~2.5 million GT annual capacity at a greenfield yard in Thoothukudi
• Foundation for a 2,000+ acre shipbuilding and heavy‑industries cluster
• Project aligned with Maritime Amrit Kaal Vision 2047 to push India into top global shipbuilding ranks

Sources: PIB, Devdiscourse, ET Infra