India advances $4 bn Thoothukudi Shipyard Project with HD Hyundai

India has advanced plans for a proposed $4 billion greenfield shipyard at Thoothukudi in Tamil Nadu following a meeting between Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal and HD Hyundai Chairman Chung Ki-sun in Seoul.

During the meeting, 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 project. The two sides agreed to establish a Joint Working Group (JWG) to oversee project development and work towards a joint venture structure, with the Detailed Project Report (DPR) expected to be finalised within six months.

The meeting took place during Sonowal’s four-day visit to South Korea, aimed at strengthening bilateral cooperation in shipbuilding and the wider maritime industry.

Speaking at the meeting, Sonowal said, “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. Your team has done an incredible job during the site assessment and has been continuously collaborating with the teams from both Central as well as the State governments.”

The project builds on the India–Republic of Korea Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics adopted in April 2026. The memorandum of understanding was signed on 20 April between HD KSOE and National Shipbuilding & Heavy Industries Park, Tamil Nadu Limited (NSHIP-TN), on the sidelines of South Korean President Lee Jae Myung’s state visit to India.

The proposed shipyard is being developed under the Government of India’s Shipbuilding Development Scheme and is envisaged to have an annual capacity of approximately 2.5 million gross tonnage (GT), subject to validation through the DPR. Once operational, it is expected to become India’s largest commercial shipyard and strengthen the country’s position in the global shipbuilding industry.

The next phase will focus on finalising the investment structure, equity participation and implementation arrangements, subject to due diligence and the required approvals. The DPR will cover the vessel product mix, production capacity, infrastructure requirements, project costs and implementation schedule.

NSHIP-TN will facilitate the availability of suitable waterfront land, enabling infrastructure and utilities, and coordinate with central and state authorities for statutory approvals. Preparatory work will also cover site assessments, infrastructure planning and preliminary dredging and reclamation studies.

Highlighting domestic demand, Sonowal said, “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. We look forward to HD KSOE deepening its footprint in India through strategic partnerships, technology collaboration and localised manufacturing, thereby contributing to India’s emergence as a global shipbuilding hub.”

The collaboration also aims to develop local capabilities through technology transfer, workforce skilling and knowledge exchange. Opportunities for technical training and partnerships with Indian industry and academic institutions will be explored to strengthen domestic shipbuilding expertise and generate skilled employment.

In his closing remarks, Sonowal said, “This partnership will be a truly vital & defining cornerstone of the broader India-Korea relationship. By bringing together South Korea’s world-class technological genius with India’s economic energy and market scale, we are creating a partnership that will genuinely reshape the global maritime landscape. Let’s join hands to bring this incredible shipyard to life on the ground. I am eager to hear your thoughts on how we can accelerate this journey together.”

The Thoothukudi shipyard is envisaged as a flagship initiative under the India–Republic of Korea Special Strategic Partnership, combining South Korea’s shipbuilding expertise with India’s industrial capabilities and long-term maritime ambitions.