India, South Korea to finalise Thoothukudi shipyard project report in 6 months

India and South Korea will work towards finalising a detailed project report within six months for a proposed $4 billion greenfield shipyard at Thoothukudi in Tamil Nadu, the government said on Wednesday.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal discussed the next steps for the project with HD Hyundai Chairman Chung Ki-sun during his four-day visit to South Korea.

HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the shipbuilding arm of HD Hyundai, reiterated its intention to participate as a primary strategic investor in the proposed shipyard, according to an official statement.

The two sides will work towards finalising a joint venture structure, including investment arrangements and equity participation, subject to due diligence and requisite approvals.

The detailed project report (DPR) will cover the proposed vessel mix, production capacity, infrastructure requirements, project costs and implementation schedule.

The proposed shipyard is being developed under the government's Shipbuilding Development Scheme and is envisaged to have an annual shipbuilding capacity of around 2.5 million gross tonnes (GT), subject to validation through the DPR.

Once operational, it is expected to be India's largest commercial shipyard.

"We have a clear mandate to scale up our work together. The MoU we signed on 20 April 2026 is the bedrock of what we want to build together in Thoothukudi, Tamil Nadu. A greenfield shipyard with $4 billion investment is a massive milestone, and we are completely committed to backing it," Sonowal said at the meeting.

Highlighting the potential domestic demand for ships, Sonowal said public agencies in India were looking to acquire more than 400 vessels in the coming years.

"The domestic market in India is booming right now. Our public agencies are looking to acquire more than 400 vessels in the coming years. I am sure that apart from the export orders the mega greenfield shipyard in Thoothukudi, Tamil Nadu would be instrumental in construction of many of these identified vessels," he said.

The minister also said the project would be a defining element of the India-South Korea relationship, combining South Korea's shipbuilding expertise with India's industrial capabilities and domestic market.

The proposed project builds on the India-Republic of Korea Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics adopted in April 2026, and a memorandum of understanding signed on April 20 between HD KSOE and National Shipbuilding & Heavy Industries Park, Tamil Nadu Ltd (NSHIP-TN).

NSHIP-TN will facilitate the availability of suitable waterfront land, development of supporting infrastructure and utilities, and coordination with government authorities for statutory approvals.

Preparatory work, including site assessments, infrastructure planning and preliminary studies on dredging and land reclamation, will also be undertaken to support the project's implementation.