South Korea’s HD Hyundai has stepped up preparations for its proposed mega shipyard in Thoothukudi, with a high-level delegation visiting the site to assess project requirements and advance development plans.
The proposed greenfield facility is planned as an anchor shipyard within the Thoothukudi shipbuilding cluster and is expected to have an annual capacity of around 2.5 million gross tonnes (GT). A tripartite memorandum of understanding was signed in April 2026 between HD Korea Shipbuilding & Offshore Engineering (HD KSOE), National Shipbuilding & Heavy Industries Park Tamil Nadu (NSHIP-TN) and Sagarmala Finance Corporation.
The project represents an estimated investment of about $4 billion and is intended to significantly expand India’s shipbuilding capacity while strengthening cooperation between India and South Korea in the maritime sector.
The project has already progressed beyond the initial planning stage. The Techno-Economic Feasibility Report (TEFR) has been completed, while preparation of the Detailed Project Report and depth-feasibility assessment is underway. The National Shipbuilding Mission has also granted in-principle approval for the proposed Thoothukudi greenfield shipbuilding cluster.
HD Hyundai’s latest site assessment comes amid growing competition among Indian states to attract major shipbuilding investments. Andhra Pradesh has reportedly sought to persuade the company to consider Kakinada by offering additional incentives, although the Thoothukudi project has already secured significant institutional backing.
The facility is expected to create substantial industrial activity around Thoothukudi, supporting shipbuilding supply chains, maritime manufacturing and skilled employment while contributing to India’s ambition of becoming a leading global shipbuilding nation.