India, HD Hyundai advance plans for $4 billion shipyard in Tamil Nadu

Union Minister Sarbananda Sonowal engaged with HD Hyundai's Chairman in Seoul to discuss a significant shipyard project. The proposed USD 4 billion greenfield shipyard will be located in Thoothukudi, Tamil Nadu. A joint working group is tasked with overseeing the project development and establishing a joint venture structure. Once operational, the shipyard aims to enhance India's competitiveness in global maritime markets.

New Delhi: Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal on Wednesday met Chairman of HD Hyundai Chung Ki-sun in Seoul and discussed development of the proposed USD 4 billion greenfield shipyard at Thoothukudi in Tamil Nadu, according to an official statement.

The meeting took place during Sonowal's four-day visit to South Korea, which is focused on deepening cooperation in shipbuilding and the wider maritime industry.

HD Korea Shipbuilding & Offshore Engineering (HD KSOE), HD Hyundai's shipbuilding arm, reiterated its intent to participate as a primary strategic investor, and the project partners expressed their shared intent to take the shipyard forward, the release said.

"A joint working group (JWG) will now oversee project development, the two sides will work towards agreeing a joint venture structure, and the detailed project report (DPR) is expected to be finalised within six months," it added.

Speaking at the meeting, Sonowal said, "We have a clear mandate to scale up our work together. The MoU we signed on 20 April, 2026 is the bedrock of what we want to build together in Thoothukudi, Tamil Nadu."

"A greenfield shipyard with USD 4 billion investment is a massive milestone, and we are completely committed to backing it," he added.

The discussions also built on the India-Republic of Korea Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics adopted in April 2026 and the Memorandum of Understanding signed on 20 April 2026 between HD-KSOE and NSHIP-TN on the sidelines of the state visit by the President of the Republic of Korea Lee Jae Myung.

The proposed shipyard, being developed under the

Indian government's Shipbuilding Development Scheme, is envisaged to have an annual shipbuilding capacity of nearly 2.5 million Gross Tonnage (GT), subject to validation through Detailed Project Report (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," the statement said.

Beyond infrastructure development, the collaboration aims to establish a globally competitive shipbuilding ecosystem in India, with emphasis on technology transfer and workforce skilling.

The project 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.