Land selected for shipbuilding, repair centres in Andhra Pradesh, Tamil Nadu & Gujarat

New Delhi: The Centre has identified land for establishing mega shipbuilding and repair centres in Andhra Pradesh, Tamil Nadu, and Gujarat. Officials aware of the developments said South Korea's HD Hyundai is close to finalising a partnership with Cochin Shipyard Limited (CSL) for domestically manufactured large vessels for intercontinental trade.

"CSL and HD Hyundai are zeroing in on the location of this shipbuilding facility," a senior official told ET while adding that Thoothukudi in Tamil Nadu is expected to be finalised for this mega infrastructure project with expected investment of around ₹10,000 crore by completion. Responding to queries from ET on talks around partnership with CSL, HD Hyundai said "Nothing has been confirmed."

CSL did not respond till press time.


This progress is close to the finance ministry's Expenditure Finance Committee (EFC) completing appraisals for an enhanced shipbuilding financial assistance policy worth ₹18,090 crore, and a maritime development fund of ₹25,000 crore announced in Budget 2025-26.

The other two land parcels are being offered for more international shipbuilding projects. "Interest has been received from Netherlands, France, and Middle East-headquartered companies for setting up manufacturing facilities in India," the official said.

Officials aware of the deliberations said there will soon be greater financial assistance to the shipbuilding industry, seeking to support the manufacture of large vessels in the country.

India currently holds less than 1% of the global shipbuilding market but hopes to break into the global top 10 ranking by 2030, and top five by 2047. The government is eying a multi-pronged approach with plans to procure state-owned ships also getting a fillip.

Bharat Container Line, a national container shipping carrier, is expected to reduce dependence on foreign-flagged vessels and strengthen India's control over foreign trade.

An existing financial assistance policy for domestic shipyards was launched in December 2015 for shipbuilding contracts signed between April 1, 2016, and March 31, 2026. It is focused on supporting development of specialised vessels such as those for wind farm installations and those powered by green fuels.

Plans are also afoot to provide direct capital support to create the breakwater or shipyard protection infrastructure, along with capital dredging at shipyards.