India took a major step toward becoming a global shipbuilding hub with the signing of a tripartite memorandum of understanding (MoU) to establish the country’s first mega greenfield shipyard at Thoothukudi.
The agreement was signed between HD Korea Shipbuilding & Offshore Engineering (HD KSOE), National Shipbuilding & Heavy Industries Park, Tamil Nadu (NSHIP-TN), and Sagarmala Finance Corporation Limited under the aegis of the Ministry of Ports, Shipping and Waterways.
According to the ministry, the proposed shipyard will have an estimated capacity of 2.5 million gross tonnage (GT) and is expected to generate around 15,000 direct jobs once operations stabilise, besides creating significant indirect employment opportunities across Tamil Nadu and neighbouring regions.
The MoU lays the foundation for the joint development, financing, construction and operation of a world-class shipbuilding facility at Thoothukudi. The project is among the earliest implementation outcomes under the India–Republic of Korea maritime cooperation framework, highlighting the deepening strategic partnership between the two countries in shipbuilding, shipping and maritime logistics.
The greenfield shipyard is also expected to act as a catalyst for a broader maritime industrial ecosystem, including ancillary manufacturing clusters, localisation of marine equipment supply chains, workforce skilling initiatives, and adoption of advanced manufacturing, digital shipbuilding and green shipping technologies.
NSHIP-TN is a special purpose vehicle jointly promoted by V.O. Chidambaranar Port Authority and State Industries Promotion Corporation of Tamil Nadu (SIPCOT). Sagarmala Finance Corporation Limited functions under the Ministry of Ports, Shipping and Waterways.
As part of the collaboration, Indian shipbuilding professionals and workers may also receive training at HD KSOE facilities in the Republic of Korea, helping strengthen domestic technical expertise in advanced shipbuilding practices.
The initiative aligns with the India-ROK Comprehensive Framework “VOYAGES” (Shared Vision for Operation of Yard Assisted Growth with Efficiency and Scale), launched following discussions between Narendra Modi and Lee Jae Myung during the South Korean President’s State Visit to India.
The proposed facility will serve as the anchor project of the larger Thoothukudi Shipbuilding Cluster being developed by NSHIP-TN. While the Techno-Economic Feasibility Report (TEFR) has already been completed, preparation of the Detailed Project Report (DPR) is currently underway, the ministry statement added.