HD Hyundai Backs India’s Thoothukudi Shipyard Plan | Today’s news
HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the shipbuilding arm of HD Hyundai, has reiterated its intention to become the primary strategic investor in a proposed greenfield shipyard in Thoothukudi, Tamil Nadu, boosting India’s shipbuilding plans, the Ministry of Ports, Shipping and Waterways said in a statement on Wednesday.
The investment commitment from the Korean shipbuilder was secured during the ongoing four-day visit of Shipping Minister Sarbananda Sonowal to South Korea, which is aimed at deepening India-Korea cooperation in shipbuilding and the wider maritime industry.
Read also | Can India become the world’s next marine manufacturing hub?
On Wednesday, the minister met Chung Ki-sun, chairman of HD Hyundai, in Seoul, where the two sides discussed the company’s investment plan in a shipbuilding cluster in India, with both sides agreeing to work on a joint venture structure and finalize a detailed project report (DPR) within six months.
National Shipbuilding & Heavy Industries Park, Tamil Nadu Ltd (NSHIP-TN) and HD KSOE have expressed their joint intention to move the proposed shipyard to greenfield, according to a statement.
Sonowal told the HD Hyundai chairman that his main objective in Seoul was to quickly realize the shared vision he had outlined to Prime Minister Narendra Modi: that India would be the cornerstone of HD Hyundai’s global future. Maritime relations between India and South Korea have gained new momentum since President Lee Jae Myung’s visit to New Delhi earlier this year, the ministry said in a statement.
“We have a clear mandate to strengthen our work together. The MoU we signed on April 20, 2026 is the foundation of what we want to build together in Thoothukudi, Tamil Nadu. The $4 billion greenfield shipyard is a huge milestone and we are fully committed to support it,” Sonowal said at the meeting.
Read also | India looking for shipbuilding big league like Cochin Shipyard, HD Hyundai close to $500 million JV
The largest merchant shipyard
The shipyard is intended to be a flagship initiative in the special strategic partnership between India and the Republic of Korea, combining Korea’s advanced shipbuilding expertise with India’s industrial capabilities and long-term maritime ambitions.
The cluster is spread over 3000 acres. In addition to the shipbuilding infrastructure, including a more than 300-meter dry dock, KSOE’s HD facility will also house several of the Korean entity’s vendors who have supported its shipbuilding plans globally.
The yard, being developed under the Shipbuilding Development Program of the Government of India, will have an annual shipbuilding capacity of approximately 2.5 million gross tonnage (GT), subject to verification through the DPR.
Once commissioned, it is expected to be the largest commercial shipyard in India, significantly enhancing India’s domestic shipbuilding capacity and competitiveness in the global maritime industry.
Talking about domestic demand in India, Sarbananda Sonowal said, “The domestic market 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, a large greenfield yard would help in building many of these identified vessels.”
Read also | From charter to builder: Refiners, SCI explore JV shipyard with Korean giants
Project planning
To expedite implementation, a task force composed of officials from both sides would oversee the development of the project and the coordination of key activities. The two organizations will seek to agree on a suitable structure for the joint venture and are expected to finalize a DPR within six months, which will include vessel product mix, production capacity, infrastructure requirements, project costs and implementation schedule.
NSHIP-TN will facilitate availability of suitable waterfront land, development of infrastructure and utilities and coordination with relevant authorities to ensure timely statutory approvals in accordance with applicable laws and procedures. In parallel, preparatory activities will continue, including site assessment, infrastructure planning and preliminary dredging/reclamation studies to support project readiness.
Apart from infrastructure development, the collaboration aims to create a globally competitive shipbuilding ecosystem in India with an emphasis on technology transfer and workforce qualification. Opportunities for technical training, knowledge exchange and collaboration with Indian industry and academic institutions will be explored to strengthen local shipbuilding capabilities and create skilled employment, the statement said.
