Major boost by HD Hyundai to India's Thoothukudi mega shipyard project

Important progress has been made in the operations of India's Thoothukudi mega shipyard during Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal's four-day visit to South Korea. Following a meeting in Seoul with Chung Ki-sun, Chairman of HD Hyundai, HD Hyundai's shipbuilding arm, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), has reiterated its intention to participate as a key strategic investor in the proposed greenfield shipyard at Thoothukudi, Tamil Nadu. According to the PIB, this meeting has given fresh momentum to the project and paved a clear path for the coming days.

To take this project forward, a Joint Working Group (JWG) will now be formed, which will oversee the development of the project. Both parties will work towards agreeing on a joint venture structure. The Detailed Project Report (DPR) of this project is expected to be finalized within the next six months. This DPR will include important issues such as the ship production mix, production capacity, infrastructure requirements, project cost and implementation schedule.

Union Minister Sarbananda Sonowal stated that his main goal is to translate that shared vision into reality as quickly as possible, which the Chairman presented before Prime Minister Narendra Modi. According to the vision presented by the Chairman, India is a key pillar of HD Hyundai's global future. India-Korea maritime relations have received new energy following the visit of South Korean President Lee Jae-myung to New Delhi earlier this year.

Sonowal further stated in this regard, "We have a clear mandate to expand our work together. The MoU that we signed on April 20, 2026, is the foundation of what we want to build together in Thoothukudi, Tamil Nadu. The greenfield shipyard with an investment of $4 billion is a massive milestone, and we are fully committed to supporting it. Your team has done wonderful work during the site assessment and it is continuously collaborating with the teams of both the central and state governments."

Both parties, National Shipbuilding and Heavy Industries Park, Tamil Nadu Limited (NSHIP-TN) and HD KSOE, have expressed their shared intention to take this greenfield shipyard forward in Thoothukudi. This discussion is based on the 'India-Republic of Korea Comprehensive Framework for Partnership in Shipbuilding, Shipping and Marine Logistics' adopted in April 2026 and the agreements reached during the state visit of South Korean President Lee Jae-myung. A Memorandum of Understanding (MoU) was signed between HD-KSOE and NSHIP-TN on April 20, 2026. During the meeting, HD-KSOE appreciated the favorable conditions created by the Government of India for the implementation of the project.

Being developed under the Shipbuilding Development Scheme of the Government of India, the annual shipbuilding capacity of this shipyard is envisaged to be approximately 2.5 million Gross Tons (GT), though this matter will be subject to the finalization of the DPR. According to a report by Mint, this cluster is spread over an area of 3,000 acres. In addition to shipbuilding infrastructure, which includes a dry dock more than 300 meters long, HD KSOE's facility will also house several vendors of the Korean entity who globally support their shipbuilding plans. Once operational, this is expected to be India's largest commercial shipyard, strengthening domestic shipbuilding capacity and India's competitiveness in the global maritime industry.

HD KSOE expressed a strong intention during the meeting to participate as the primary strategic investor to bring its global expertise in shipyard design, construction, advanced manufacturing and operations. Discussions will now focus on finalizing the proposed investment structure, equity participation and implementation arrangements, subject to due diligence and necessary approvals. NSHIP-TN has re-affirmed its support, including all coordination with central and state-level government authorities for the establishment of the greenfield shipyard.

Talking about the domestic demand in India, Sarbananda Sonowal stated, "The domestic market in India is currently growing rapidly. Our public agencies want to acquire more than 400 ships in the coming years. I am confident that apart from export orders, the mega greenfield shipyard to be built in Thoothukudi, Tamil Nadu will play an important role in the construction of many of these identified ships. We look forward to HD KSOE deepening its presence in India through strategic partnership, technology cooperation and local manufacturing, to contribute to establishing India as a global shipbuilding hub."

To expedite implementation, the working group comprising officials from both sides will oversee the development of the project and coordinate key activities. NSHIP-TN will facilitate the availability of suitable waterfront land, development of capable infrastructure and utilities, and timely statutory approvals with relevant authorities in accordance with applicable laws and procedures. Along with this, initial activities including site assessment, infrastructure planning and preliminary dredging/reclamation studies for project preparedness will also be taken forward.

In addition to infrastructure development, the primary objective of this collaboration is to establish a globally competitive shipbuilding ecosystem in India with an emphasis on technology transfer and workforce skilling. Opportunities for technical training, knowledge exchange and collaboration with Indian industry and academic institutions will be explored to strengthen indigenous shipbuilding capabilities and create skilled employment.

In his concluding remarks, Sarbananda Sonowal described this partnership as a crucial pillar of India-Korea relations. He said, "By bringing South Korea's world-class technological talent together with India's economic energy and market scale, we are building a partnership that will realistically reshape the global maritime landscape. Let's join hands to make this wonderful shipyard a reality on the ground. I am eager to hear your thoughts on how we can accelerate this journey together."

This proposed Thoothukudi shipyard is seen as a flagship initiative under the India-Republic of Korea Special Strategic Partnership, combining Korea's advanced shipbuilding expertise with India's industrial capabilities and long-term maritime aspirations.