Special Purpose Vehicle Formed to Develop Mega Shipbuilding Cluster at Thoothukudi

India’s ambitions to strengthen its commercial shipbuilding capabilities have received a significant push with the formation of a special purpose vehicle to develop a mega shipbuilding cluster at Thoothukudi in Tamil Nadu. The project marks the country’s first large-scale, integrated shipbuilding hub and is expected to play a key role in building a self-reliant maritime ecosystem.

The SPV, National Shipbuilding and Heavy Industries Park, Tamil Nadu, has been formed as a 50:50 joint venture between the V O Chidambaranar Port Authority, a Government of India entity, and the State Industries Promotion Corporation of Tamil Nadu. The joint venture structure is aimed at combining central and state capabilities to accelerate the development of shipbuilding infrastructure and allied industries.

The project has been provided for in the Union Budget with an outlay of Rs 19,989 crore under the Shipbuilding Development Scheme approved by the Union Cabinet. The greenfield cluster will be developed at Thoothukudi, a strategic port location with direct access to international shipping routes, making it suitable for large-scale shipbuilding and heavy engineering activities.

According to officials, the proposed cluster will feature a waterfront stretching about two kilometres, along with a landside area of nearly 2,000 acres. Of this, around 1,000 acres will be earmarked for shipyards, while the remaining area will support ancillary units, equipment manufacturers, logistics facilities, and other maritime support services. The integrated layout is expected to improve efficiency across the shipbuilding value chain.

Beyond infrastructure creation, the project is expected to generate substantial employment and spur industrial growth in southern Tamil Nadu. The presence of ancillary industries is likely to attract private investment and encourage the development of skills related to shipbuilding, fabrication, and marine engineering.

With global demand for commercial vessels, repair services, and offshore structures on the rise, the Thoothukudi cluster is expected to help Indian shipbuilders compete more effectively in international markets. The initiative is also seen as a step towards reducing dependence on imports and positioning India as a competitive hub for shipbuilding and heavy industries in the long term.