Thoothukudi is the probable location for the ₹10,000 crore CSL-Hyundai project

The Center has selected land in Gujarat, Tamil Nadu, and Andhra Pradesh for the construction of massive shipbuilding and repair facilities. It is reported that a deal between South Korea’s HD Hyundai and Cochin Shipyard Limited (CSL) for locally built large vessels for intercontinental trade is almost finalized. Thoothukudi in Tamil Nadu is anticipated to be finalized for this massive infrastructure project with an estimated expenditure of ₹10,000 crore by completion, and CSL and HD Hyundai are zeroing in on the location of this shipbuilding facility.

This development coincides with the completion of evaluations by the Finance Ministry’s Expenditure Finance Committee (EFC) for a ₹25,000 crore maritime development fund and an improved shipbuilding financial assistance policy valued at ₹18,090 crore, which were announced in Budget 2025–2026. More multinational shipbuilding projects are being offered for the other two land lots. Companies with headquarters in the Netherlands, France, and the Middle East have expressed interest in establishing manufacturing operations in India.

According to officials with knowledge of the discussions, the shipbuilding sector will soon receive more funding in an effort to promote the production of large ships in the nation. Although it only accounts for less than 1% of the world’s shipbuilding business, India aspires to rank in the top 10 by 2030 and the top five by 2047. The government is planning to purchase state-owned ships as part of a multifaceted strategy. It is anticipated that the national container shipping company Bharat Container Line will increase India’s authority over international trade and lessen reliance on ships flying foreign flags.

December 2015 saw the introduction of an existing financial aid scheme for domestic shipyards for shipbuilding contracts signed between April 1, 2016, and March 31, 2026. The creation of specialized vessels, such as those for wind farm installations and those propelled by green fuels, is its main objective. Along with capital dredging at shipyards, plans are also underway to offer direct capital support for the construction of the breakwater or shipyard protection infrastructure.