Cochin Shipyard secures approval for ₹4,000 crore Kochi expansion under National Shipbuilding Mission

Cochin Shipyard Ltd has received in-principle approval under the National Shipbuilding Mission to expand its shipbuilding infrastructure in Kochi through a proposed ₹4,000 crore investment, providing a major boost to India’s efforts to strengthen domestic shipbuilding capacity.

The state-owned shipbuilder plans to establish a large block fabrication facility through a joint venture with South Korea’s HD Hyundai Heavy Industries. The facility will be developed on land leased from the Cochin Port Authority adjacent to the company’s existing shipyard in Kochi, enabling the yard to handle larger and more complex shipbuilding projects.

The approval has been granted under the Government of India’s Shipbuilding Development Scheme, which supports brownfield expansion of operational shipyards through capital assistance. While the in-principle approval allows preparatory work to begin, the project will become eligible for financial support only after meeting the scheme’s final approval requirements.

Cochin Shipyard is among the first major beneficiaries of the initiative, alongside Swan Defence and Heavy Industries, which has also secured approval to expand its Pipavav shipyard in Gujarat.

The Union Cabinet has approved a ₹19,989 crore package to strengthen India’s shipbuilding ecosystem, including ₹8,261 crore earmarked specifically for brownfield expansion projects. Eligible shipyards can receive grants covering up to 25 per cent of approved project costs, subject to a maximum assistance of ₹1,500 crore.

The proposed Kochi expansion is expected to significantly improve fabrication capacity, enhance production efficiency and support the construction of larger commercial and specialised vessels. Industry experts believe the partnership with HD Hyundai Heavy Industries could also facilitate technology transfer and introduce advanced manufacturing practices into India’s shipbuilding sector.

The Shipbuilding Development Scheme supports investments in dry docks, ship lifts, floating docks, modular fabrication facilities, automation systems and digital technologies, helping existing shipyards modernise their infrastructure.

The latest approval comes as India accelerates efforts to position itself as a global maritime manufacturing hub. The government has set an ambitious target of placing the country among the world’s top 10 shipbuilding nations by 2030 and among the top five by 2047, with capacity expansion at existing shipyards expected to play a central role in achieving that goal.