Sarbananda Sonowal discusses $4 billion Thoothukudi shipyard project with HD Hyundai chief

India and South Korean shipbuilding giant HD Hyundai will work towards finalising a detailed project report within six months for a proposed $4 billion greenfield shipyard in Thoothukudi, Tamil Nadu, following talks between Union Minister Sarbananda Sonowal and HD Hyundai chairman Chung Ki-sun in Seoul on October 28.

The meeting marked a step forward in the proposed project, with HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the group's shipbuilding arm, reiterating its intention to participate as a primary strategic investor.

The two sides will establish a joint working group to oversee the project's development and work towards finalising a joint venture structure, including investment arrangements and equity participation. These steps will be subject to due diligence and the necessary approvals.

The proposed shipyard is expected to have an annual shipbuilding capacity of around 2.5 million gross tonnes (GT), subject to validation through the detailed project report. If realised, it is envisaged to become India's largest commercial shipyard, strengthening the country's domestic shipbuilding capabilities.

Sonowal is on a four-day visit to South Korea to advance bilateral cooperation in shipbuilding, shipping and the wider maritime sector.

The project follows a memorandum of understanding signed on April 20, 2026, between HD KSOE and National Shipbuilding & Heavy Industries Park, Tamil Nadu Limited (NSHIP-TN). The agreement was signed alongside the visit of South Korean President Lee Jae Myung to India.

Addressing Chung, Sonowal said the Indian government was committed to translating the proposed investment into reality, describing the agreement as the foundation for developing the shipyard.

He also pointed to rising domestic demand for vessels, saying Indian public agencies were looking to acquire more than 400 vessels in the coming years.

Sonowal said the Thoothukudi facility could cater to part of this demand alongside export orders, while encouraging HD KSOE to expand its presence in India through strategic partnerships, technology collaboration and local manufacturing.

Under the proposed arrangement, NSHIP-TN will coordinate with central and state government authorities to facilitate waterfront land, supporting infrastructure, utilities and statutory approvals.

Preparatory work, including site assessments, infrastructure planning and preliminary studies on dredging and land reclamation, will also be taken forward as the project moves towards the planning stage.

The detailed project report will examine the vessel types to be built, production capacity, infrastructure requirements, estimated costs and implementation schedule.

Beyond the construction of the shipyard, the partnership is also expected to explore technology transfer, technical training and workforce development, including collaboration with Indian industries and academic institutions.

HD KSOE has acknowledged the enabling conditions created by the Indian government for the project and reiterated its interest in bringing its expertise in shipyard design, construction, advanced manufacturing and operations to the proposed facility.

The shipyard is being developed under the Centre's Shipbuilding Development Scheme and is envisaged as a major initiative under the India-South Korea Special Strategic Partnership.

However, the project remains at the development stage, with its final investment structure, capacity and implementation arrangements to be determined through further planning and approvals.