A major shipyard project is set to take shape in Thoothukudi in Tamil Nadu, as part of a shipbuilding cluster planned by the central government to boost India’s maritime manufacturing sector. The project, which will begin with an initial investment of ₹1,500 crore, is being developed in collaboration with private investors and leading international shipbuilding firms.
The new facility aims to produce modern, green-energy-powered cargo vessels. A memorandum of understanding (MoU) has been signed between the Thoothukudi VO Chidambaranar Port authority under the Union Ministry of Ports, Shipping and Waterways and the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Limited for the creation of the mega shipbuilding cluster in Thoothukudi.
However, the emergence of this shipyard is expected to dim the prospects of the long-proposed Poovar shipyard project in Thiruvananthapuram district.
The Centre had first approached Kerala with the idea of establishing a shipyard in Poovar back in 2011, when then Union Shipping Secretary K Mohandas proposed the creation of a shipbuilding cluster in the state. The Cochin Shipyard Ltd was tasked with conducting a feasibility study, which identified Vizhinjam, Poovar, and Azhikkal as potential sites.
Since the Vizhinjam port project was already under development and Azhikkal was deemed impractical, Poovar emerged as the most suitable location. A detailed study report was subsequently submitted to the state government. The proposal remained a topic of discussion among industry stakeholders for years. The Kerala government did not show active interest in this matter later. After the Vizhinjam port became a reality, the idea of the Poovar shipyard project was revived.
Poovar’s natural advantages, including a 30-metre sea depth, proximity to the international shipping lane (10 km), and a 2-km-long beach frontage, made it an ideal site for a shipyard. The project was expected to attract investment easily, especially after the completion of the Vizhinjam International Port.
Despite these favourable conditions, the Kerala government did not move forward with the project. The reports stated that the construction of a breakwater at Poovar would be prohibitively expensive, while the Neyyar River estuary, which flows into the sea at the site, posed additional challenges due to a high amount of sand deposition.
Now, with a foreign-backed shipyard taking shape just 200 km from Thiruvananthapuram, experts believe investor interest in the Poovar project is likely to wane further.