India-Korea MoU Sets Stage for India’s First Mega Greenfield Shipyard at Thoothukudi

India’s maritime manufacturing ambitions have received a major boost with the signing of a landmark tripartite Memorandum of Understanding for the development of the country’s first mega greenfield shipyard at Thoothukudi in Tamil Nadu. The agreement brings together HD Korea Shipbuilding & Offshore Engineering Co. Ltd. of South Korea, National Shipbuilding & Heavy Industries Park Tamil Nadu Limited, and Sagarmala Finance Corporation Limited under the Ministry of Ports, Shipping and Waterways.

The MoU was signed on April 20, 2026, and announced by the Ministry of Ports, Shipping and Waterways on May 13, 2026. It is one of the earliest implementation outcomes under the India-Republic of Korea maritime cooperation framework called “VOYAGES” — Shared Vision for Operation of Yard Assisted Growth with Efficiency and Scale — which was launched after the meeting between Prime Minister Narendra Modi and South Korean President Lee Jae Myung during the latter’s State Visit to India.

The proposed Thoothukudi Greenfield Shipyard is envisaged as a world-class shipbuilding facility with an annual capacity of 2.5 million Gross Tonnage. The project is expected to generate around 15,000 direct jobs once operations stabilise, apart from creating substantial indirect employment across Tamil Nadu and neighbouring regions.

The shipyard will serve as the anchor facility of the Thoothukudi Shipbuilding Cluster being developed by NSHIP-TN, a Special Purpose Vehicle jointly promoted by V.O. Chidambaranar Port Authority and the State Industries Promotion Corporation of Tamil Nadu. The Techno-Economic Feasibility Report for the project has already been completed, while preparation of the Detailed Project Report is currently underway. NSHIP-TN has also received in-principle approval from the National Shipbuilding Mission for the proposed greenfield shipbuilding cluster at Thoothukudi.

The strategic importance of the project lies in its scale. India’s Maritime Amrit Kaal Vision 2047 aims to place the country among the world’s top five shipbuilding nations, with a targeted shipbuilding output of 4.5 million Gross Tonnage per year by 2047. With an envisaged capacity of 2.5 million Gross Tonnage annually, the Thoothukudi facility alone could become a major contributor to that long-term target.

Beyond shipbuilding capacity, the project is expected to catalyse a wider maritime industrial ecosystem. The government expects the facility to support ancillary and component manufacturing clusters, localisation of marine equipment, engineering supply chains, workforce skilling, digital shipbuilding, advanced manufacturing and green shipping technologies. The collaboration may also open the way for Indian shipbuilding professionals and workers to receive training at HD KSOE facilities in South Korea.

The MoU comes at a time when India is trying to build global competitiveness in shipbuilding. In September 2025, the government launched a shipbuilding policy package of around ₹70,000 crore as part of a four-pillar strategy to accelerate India’s emergence as a global shipbuilding hub. Since then, Indian shipyards have begun attracting more international interest and orders. The PIB release noted that CMA CGM has placed orders for six 1,700 TEU vessels at Cochin Shipyard Limited, while Swan Energy’s Pipavav Shipyard has secured orders for six chemical tankers from Norway and four ammonia-powered Kamsarmax bulk carriers from the United Kingdom.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal described the MoU as a defining moment in India’s journey towards becoming a global maritime power. He said the partnership under the VOYAGES framework would bring technology, scale, innovation and green shipbuilding capability to India, while helping Thoothukudi emerge as a strategic maritime and industrial hub.

For India, the Thoothukudi project is not just a shipyard announcement. It represents a larger industrial push to combine port infrastructure, international technology partnerships, green manufacturing and skilled employment. If implemented effectively, the mega greenfield shipyard could significantly expand India’s commercial shipbuilding base and strengthen the country’s position in the global maritime supply chain.

Source: PIB