India and HD Hyundai Advance Plans for $4 Billion Thoothukudi Shipyard

India’s proposed $4 billion shipyard in Thoothukudi is moving towards its next stage of development, with the government and South Korean shipbuilding major HD Hyundai agreeing to advance project planning and work towards a joint venture structure.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal met HD Hyundai Chairman Chung Ki-sun in Seoul on Wednesday to discuss the proposed greenfield shipyard in Tamil Nadu. The meeting took place during Sonowal’s four-day visit to South Korea, aimed at strengthening bilateral cooperation in shipbuilding and the wider maritime sector.

HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the shipbuilding arm of HD Hyundai, reiterated its intention to participate in the project as a primary strategic investor, according to an official statement.

The two sides have agreed to establish a joint working group to oversee the project’s development. Discussions will also focus on finalising a joint venture structure, while the detailed project report (DPR) is expected to be completed within six months.

The proposed investment of $4 billion, equivalent to roughly ₹33,000 crore depending on exchange rates, could make the facility a major addition to India’s commercial shipbuilding infrastructure. The project is envisaged to have an annual shipbuilding capacity of nearly 2.5 million gross tonnes, subject to validation through the DPR.

If completed as planned, the shipyard is expected to become India’s largest commercial shipbuilding facility, strengthening the country’s domestic capacity and its ability to compete in the international maritime market.

The project builds on the memorandum of understanding signed on April 20, 2026, between HD KSOE and NSHIP-TN, during South Korean President Lee Jae Myung’s state visit to India. It also aligns with the India-Republic of Korea Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics adopted in April 2026.

Speaking at the Seoul meeting, Sonowal described the earlier MoU as the foundation for cooperation in Thoothukudi and reaffirmed the government’s commitment to supporting the project.

Beyond the shipyard itself, the proposed partnership is expected to focus on technology transfer and workforce training. Combining South Korea’s shipbuilding expertise with India’s industrial capabilities could help develop a broader domestic shipbuilding ecosystem.

The project is envisaged as a flagship initiative under the India-Republic of Korea Special Strategic Partnership and the Indian government’s Shipbuilding Development Scheme. However, the joint venture structure, detailed project configuration and capacity estimates remain subject to further development and validation.

With the joint working group set to take the process forward, the next six months will be important in determining the project’s technical, financial and implementation framework.