The agreement stems from the India-Republic of Korea VOYAGES maritime cooperation framework, a comprehensive partnership in shipbuilding, shipping and maritime logistics.
Thoothukudi in Tamil Nadu will host India’s first mega green shipyard under a tripartite MoU signed between HD Korea Shipbuilding & Offshore Engineering Co. Ltd, National Shipbuilding & Heavy Industries Park, Tamil Nadu Ltd, and Sagarmala Finance Corp. Ltd (SMFCL).
Although the agreement was signed on April 20, the Ministry of Ports, Shipping and Waterways shared full details on Wednesday. HD Korea Shipbuilding & Offshore Engineering Co. Ltd is a global leader in shipbuilding. National Shipbuilding & Heavy Industries Park, Tamil Nadu Ltd is a special purpose vehicle jointly promoted by VO Chidambaranar Port Authority and the State Industries Promotion Corp. of Tamil Nadu. Sagarmala Finance Corp. Ltd is a government-owned financing entity under the Ministry of Ports, Shipping and Waterways.
The MoU was exchanged in the presence of Sarbananda Sonowal, Minister for Ports, Shipping and Waterways, and Lee Jae Myung, President of the Republic of Korea, during the latter’s visit to India. The agreement is a result of the India-Republic of Korea VOYAGES (Shared Vision for Operation of Yard Assisted Growth with Efficiency and Scale) maritime cooperation framework for partnership in shipbuilding, shipping and maritime logistics, launched after the meeting between Prime Minister Narendra Modi and President Myung.
Speaking on the occasion, Sonowal said that this partnership under the VOYAGES framework will bring world-class technology, scale, innovation and green shipbuilding capabilities to India. “It will not only transform India’s commercial shipbuilding capacity but also generate thousands of skilled jobs, catalyse industrial growth and strengthen our maritime ecosystem with global competitiveness. Thoothukudi will emerge as a strategic maritime and industrial hub for the world as India advances towards realising the Maritime Amrit Kaal Vision 2047.”
The shipyard represents one of the earliest implementation outcomes under the VOYAGES framework, reflecting the growing strategic partnership between the two countries in the maritime domain.
Mega Shipyard Foundation
The MoU provides a foundation for the joint development, financing, construction and operation of a world-class mega shipyard at Thoothukudi with an envisaged annual capacity of 2.5 million gross tonnage (GT). The project is expected to generate approximately 15,000 direct jobs once operations stabilise, alongside substantial indirect employment opportunities across Tamil Nadu and the surrounding region.
The proposed shipyard will serve as the anchor facility of the Thoothukudi Shipbuilding Cluster being developed by National Shipbuilding & Heavy Industries Park. The techno-economic feasibility report for the project has already been completed, while preparation of the detailed project report is currently underway. National Shipbuilding & Heavy Industries Park has also received in-principle approval from the Centre’s National Shipbuilding Mission for the proposed greenfield shipbuilding cluster.
India’s Maritime Amrit Kaal Vision 2047 aims to position India among the world’s top five shipbuilding nations, with a targeted shipbuilding output of 4.5 million GT per annum by 2047. The proposed Thoothukudi facility is expected to significantly transform India’s commercial shipbuilding landscape and substantially enhance the country’s current shipbuilding capacity.
Beyond capacity creation, the project is expected to catalyse the development of a comprehensive maritime industrial ecosystem through ancillary and component manufacturing clusters, localisation of marine equipment and engineering supply chains, workforce skilling initiatives, and adoption of advanced manufacturing, digital shipbuilding and green shipping technologies. The collaboration is likely to also facilitate training of Indian shipbuilding professionals and workers at HD Korea Shipbuilding & Offshore Engineering Co. Ltd’s facilities in the Republic of Korea.