India took a major step towards strengthening its global maritime ambitions with the signing of a landmark tripartite Memorandum of Understanding (MoU) for the development of the country’s first mega greenfield shipyard at Thoothukudi in Tamil Nadu.
The agreement was signed between HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HD KSOE), National Shipbuilding & Heavy Industries Park Tamil Nadu Limited (NSHIP-TN), and Sagarmala Finance Corporation Limited (SMFCL), under the Ministry of Ports, Shipping and Waterways.
The MoU was exchanged during the state visit of Lee Jae Myung to India in the presence of Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal.
Massive 2.5 million GT capacity planned
The proposed shipyard is expected to have an annual capacity of 2.5 million gross tonnage (GT), making it one of the largest shipbuilding facilities in the region.
The project is expected to generate nearly 15,000 direct jobs once operations stabilise, besides creating substantial indirect employment opportunities across Tamil Nadu and neighbouring regions.
The Thoothukudi facility will act as the anchor project for the larger Thoothukudi Shipbuilding Cluster being developed by NSHIP-TN, a special purpose vehicle jointly promoted by V.O. Chidambaranar Port Authority and State Industries Promotion Corporation of Tamil Nadu (SIPCOT).
Project advances towards detailed planning stage
Officials said the Techno-Economic Feasibility Report (TEFR) for the project has already been completed, while the Detailed Project Report (DPR) is currently under preparation.
NSHIP-TN has also secured in-principle approval from the National Shipbuilding Mission for the proposed greenfield shipbuilding cluster.
The collaboration is expected to bring world-class shipbuilding technologies, advanced manufacturing capabilities, digital shipbuilding systems and green shipping solutions to India.
The partnership may also facilitate specialised training programmes for Indian shipbuilding professionals and workers at HD KSOE facilities in South Korea.
Maritime Vision 2047 gets major push
The project aligns closely with India’s Maritime Amrit Kaal Vision 2047, which aims to position India among the world’s top five shipbuilding nations with a targeted shipbuilding output of 4.5 million GT annually by 2047.
The Thoothukudi shipyard alone is expected to contribute significantly towards this ambition with its planned 2.5 million GT annual capacity.
Beyond shipbuilding, the project is expected to catalyse the development of ancillary industries, marine equipment manufacturing clusters, engineering supply chains and large-scale workforce skilling initiatives in the region.
Global interest growing in india’s shipbuilding sector
The development comes after the Government of India launched a comprehensive ₹70,000 crore shipbuilding policy package in September 2025 aimed at boosting India’s competitiveness in the global shipbuilding industry.