HD Korea Shipbuilding & Offshore Engineering (HD KSOE), part of South Korea's HD Hyundai Group, is likely to begin groundwork next month on India's first greenfield shipyard by a global shipbuilder, involving an investment of ₹40,000 crore. According to reports from Mint, the company is expected to sign a definitive investment agreement with the Centre and the Tamil Nadu government after the ongoing state elections to establish the mega manufacturing facility at the Thoothukudi shipbuilding cluster. The investment pact follows a memorandum of understanding signed on 7 December 2025 by HD Hyundai with the Tamil Nadu government for the shipyard.
The shipyard will have an annual production capacity of 3.5 million gross tonnage (GT) and is expected to build a variety of ships, including very large crude carriers (VLCCs) and very large gas carriers (VLGCs), marking a significant expansion of India's shipbuilding capabilities. As reported by Mint, HD KSOE is likely to invest about ₹40,000 crore in the project in phases. Work on the project is expected to commence soon after the investment agreement is signed, with the Korean firm planning to go largely solo through a wholly-owned subsidiary in India.
Negotiations are ongoing to include State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) and the Centre's Maritime Development Fund as minority equity partners for their role in providing land and part-funding of the shipyard. According to Mint reports, HD Hyundai is among several global players, including Japanese and other Korean firms, invited to participate in India's shipbuilding and ship repair mission, which aims to position the country among the world's top five shipbuilding nations by 2047. The ministry of ports, shipping and highways is also engaged in talks with European shipbuilders, including Russian entities, for investment in India's shipbuilding programme.
Anil Devli, chief executive officer of the Indian National Shipowners' Association (INSA), told Mint that while it may take some time for the project to get off the ground, when it does, HD KSOE's investment will bring the most needed set of skills in shipbuilding, design and planning. Anshuman Magazine, chairman & CEO of CBRE India, noted that globally, large shipbuilding hubs in cities like Ulsan, Busan and Yokohama have demonstrated how maritime infrastructure can anchor entire urban ecosystems. The Thoothukudi shipbuilding cluster is spread over 3,000 acres and will house several Korean vendors that have supported HD KSOE's shipbuilding enterprises globally.
According to Mint reports, India currently has shipbuilding capacity of just about 1,00,000 GT. The Maritime Amrit Kaal Vision 2047 aims to increase India's ship ownership to 100 million GT by 2047 and shipbuilding output to 4.5 million GT by 2047. The Union Budget 2025-26 announced a ₹25,000 crore Maritime Development Fund to support shipbuilding and shipbreaking clusters, while the existing Shipbuilding Financial Assistance scheme has been revamped. The government has also proposed the development of four mega shipbuilding parks—two each on the east and west coasts.
