HD Hyundai backs India’s Thoothukudi shipyard plan

HD Korea Shipbuilding & Offshore Engineering (HD KSOE), HD Hyundai’s shipbuilding arm, has reiterated its intent to be a primary strategic investor in a proposed greenfield shipyard in Thoothukudi, Tamil Nadu, giving a boost to 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 focused on deepening India-Korea cooperation in shipbuilding and the wider maritime industry.

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 the shipbuilding cluster in India, with both agreeing to work towards 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 expressed their shared intent to advance the proposed greenfield shipyard, according to the statement.

Sonowal told HD Hyundai’s chairman that his main goal in Seoul was to swiftly realize the shared vision he had outlined to Prime Minister Narendra Modi: that India would be a core pillar of HD Hyundai’s global future. India–South Korea maritime ties have gained fresh momentum since President Lee Jae Myung’s visit to New Delhi earlier this year, the ministry’s statement said.

“We have a clear mandate to scale up our work together. The memorandum of understanding we signed on 20 April 2026 is the bedrock of what we want to build together in Thoothukudi, Tamil Nadu. A greenfield shipyard with a $4 billion investment is a massive milestone, and we are completely committed to backing it,” Sonowal said, speaking at the meeting.

The largest commercial shipyard

The shipyard is envisaged 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 ambitions.

The cluster is spread over 3,000 acres. Apart from shipbuilding infrastructure, including an over-300-metre dry dock, the HD KSOE facility will also house several of the Korean entity’s vendors that have supported its shipbuilding plans globally.

The shipyard, being developed under the Government of India's Shipbuilding Development Scheme, will have an annual shipbuilding capacity of approximately 2.5 million gross tonnage (GT), subject to validation through DPR.

Once operational, it is expected to be India's largest commercial shipyard, significantly strengthening domestic shipbuilding capacity and India's competitiveness in the global maritime industry.

Speaking about the 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 export orders, the mega greenfield shipyard would be instrumental in constructing many of these identified vessels.”

Project planning

To accelerate implementation, a working group comprising officials from both sides would oversee project development and coordinate key activities. The two organizations will endeavour to agree on a suitable joint venture structure and are expected to finalize the DPR within six months, covering vessel product mix, production capacity, infrastructure requirements, project costs and implementation schedule.

NSHIP-TN will facilitate the availability of suitable waterfront land, the development of enabling infrastructure and utilities, and coordination with relevant authorities to ensure timely statutory approvals, in accordance with applicable laws and procedures. In parallel, preparatory activities, including site assessments, infrastructure planning and preliminary dredging/reclamation studies, will be progressed to support project readiness.

Beyond infrastructure development, the collaboration aims to establish a globally competitive shipbuilding ecosystem in India, with 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 generate skilled employment, the statement said.

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Subhash is the infrastructure editor at Mint and tracks the momentous developments taking place in the space that is fast changing the Indian landscape. He finds reporting to be a passion that provides the necessary adrenaline rush and keeps you going.