L&T to Invest ₹1,000 Crore to Expand Katupalli Shipyard Near Chennai

Of the ₹1,000 crore investment coming into the shipbuilding complex in Katupalli, near Chennai, L&T intends to put some of that money for basically expanding the shipyard so that it equates with original approvals from the government as well as actual production capacity, for the shipyard, which is across 892.11 acres, has been working way below the sanctioned limits based on available infrastructural facilities.

The yard received environmental clearance and CRZ approval in 2009, which allows it to produce 50,000 TPA in modular fabrication, build 25 ships for new construction, and undertake 60 ship repairs annually. However, it currently faces infrastructure constraints, which allow the yard to execute only 15 new shipbuilding projects and about 30 repairs a year.

This deficit in shipbuilding facilities is now to be addressed with the ₹1,000 crore in major expansions to be undertaken by L&T. New facilities that will be added under the proposed expansion include fabrication shops, assembly and blasting units, paint shops, warehouses, civil accommodations, office space, a skill development centre, and greenbelt areas improving the ecological balance of the site.

The construction is likely to start by October 2025 and finish in around three years. Once expanded, the facility will run at full capacity, bolstering L&T’s standing in the country in the strategic and commercial shipbuilding domain.

This expansion opportunity arises during the period when India is ramping up in building a stronger foundation for domestic manufacturing in the defence and marine spheres under the Emerging Giants Make in India and Atmanirbhar Bharat initiatives.

L&T officials remained tight-lipped about the investment, but it goes a long way in restoring the facilities towards the original vision. The yard has an advantage since it’s located close to Chennai port to serve the dual purpose of defence and commercial shipbuilding.

The project should not only increase capacity but also create employment and skill development opportunities in the region, thereby boosting the Tamil Nadu maritime economy.