Cochin Shipyard Limited (CSL) is set to significantly expand its shipbuilding and repair capabilities by establishing a new facility at V.O. Chidambaranar Port Authority in Thoothukudi, Tamil Nadu, with a proposed investment of around ₹2,000 crore.
The Mumbai-listed shipbuilder emerged as the highest bidder in a tender floated by the port authority for leasing 49 hectares of land and 7 hectares of waterfront within the port harbour for setting up a shipbuilding and ship repair yard. CSL quoted an upfront premium of ₹306.31 crore, including GST of ₹42.72 crore, for a 30-year lease.
The company offered ₹5,803 per sq. metre for the land and ₹2,912 per sq. metre for the waterfront, substantially higher than the reserve prices of ₹2,704 per sq. metre and ₹1,352 per sq. metre, respectively. As per the tender conditions, the successful bidder will also pay a nominal annual lease rent of ₹1 per sq. metre for the leased land.
According to sources, the Board of VOC Port Authority has approved Cochin Shipyard’s financial bid, paving the way for the project.
The proposed facility forms part of Cochin Shipyard’s broader strategy to expand beyond its flagship Kochi yard. The company has already established shipbuilding and repair facilities at Udupi in Karnataka and Kolkata.
Recently, Cochin Shipyard also secured in-principle approval under the National Shipbuilding Mission for a ₹4,000 crore block fabrication facility in a joint venture with HD Hyundai Heavy Industries, to be developed on land leased from Cochin Port Authority adjacent to its Kochi shipyard.
The brownfield expansion scheme of the Ministry of Ports, Shipping and Waterways provides capital assistance of up to 25% of the approved project cost, subject to a maximum of ₹1,500 crore per shipyard, to support capacity enhancement projects such as dry docks, ship lifts, floating docks, block fabrication facilities, automation and digitalisation.
The expansion aligns with India’s long-term maritime vision of becoming one of the world’s top ten shipbuilding nations by 2030 and among the top five by 2047 through substantial growth in domestic shipbuilding capacity and ship ownership.
