Kerala to Lease 18.16 Acres to Cochin Shipyard for ₹5,000 Crore Ship Block Facility

Kerala is set to make a significant push into shipbuilding with the state government deciding to lease 18.16 acres of land at Ramanthuruth near Kochi to Cochin Shipyard Limited (CSL) for a major ship block fabrication project.

The proposed facility is expected to attract an investment of around ₹5,000 crore and create nearly 2,000 direct jobs, besides opening up additional employment opportunities across supporting industries and services.

The land is located on an island close to Kochi city and will be used to establish a large Block Fabrication Facility (BFF), according to information shared by Opposition Leader V D Satheesan at a press conference. The proposal had reportedly remained pending for some time before being cleared following discussions with Cochin Shipyard.

Under the planned development, large steel blocks required for ship construction will be fabricated and prepared at the Ramanthuruth facility. The blocks will undergo pre-outfitting, painting and finishing before being moved to Cochin Shipyard’s new dry dock.

The arrangement is expected to streamline the shipbuilding process by ensuring that ready-to-use steel blocks are available when required. Instead of carrying out all fabrication activities at the main shipyard, key stages can be completed at the new facility and the finished sections transported for final assembly.

Industry sources said the move could help reduce overall vessel construction time and support faster ship deliveries. The project is therefore being viewed as an important addition to Cochin’s expanding maritime and industrial infrastructure.

For the Kerala government, the development also brings a steady lease revenue stream. The state is expected to receive an annual lease amount of ₹1.45 crore, which would increase to around ₹1.70 crore after including GST.

The proposed investment could have a wider impact on Kerala’s shipbuilding ecosystem by creating demand for steel, engineering, logistics, fabrication and other ancillary services. With Cochin Shipyard expanding its capabilities, the Ramanthuruth project could also encourage further private and industrial investment around Kochi.