India and HD Korea Shipbuilding prepare JV for shipyard in Thoothukudi — Korea Herald
India is preparing to establish a joint venture with HD Korea Shipbuilding & Offshore Engineering to develop a shipbuilding yard in Thoothukudi, Tamil Nadu. The partners plan to agree on the JV structure and complete a detailed project report within six months, Korea Herald reports, citing India’s Minister of Ports, Shipping and Waterways Sarbananda Sonowal.
On April 20, HD Korea Shipbuilding & Offshore Engineering, National Shipbuilding & Heavy Industries Park Tamil Nadu and Sagarmala Finance signed an agreement on the development, financing, construction and operation of the shipyard. The feasibility study has already been completed, and the project has received preliminary approval under India’s National Shipbuilding Mission.
Capacity of the future shipyard
According to Sonowal, the facility in Thoothukudi could build ships with a combined gross tonnage of up to 2.5 million gross tonnes per year. By 2047, India aims to increase its total annual shipbuilding capacity to 4.5 million gross tonnes and become one of the world’s five leading shipbuilding countries.
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Investment terms are still under discussion, while the timing for the start of construction and delivery of the first vessel has not been determined. HD Hyundai said it intends to provide India with shipbuilding technology and shipyard management expertise to help develop a network of enterprises and suppliers in the country.
Government procurement and Korean companies
India is also offering Korean companies participation in planned procurement of more than 400 vessels for the public sector, with an estimated total value of $23 billion. These plans are not yet confirmed orders. Under the one-year procurement plan, tenders for 62 vessels worth about $5.7 billion are already being announced, while contracts for four vessels worth approximately $100 million have already been signed.
Indian authorities also want to involve Samsung Heavy Industries and Hanwha Ocean in new or existing shipyards. According to the minister, both companies provide technical support to Indian shipbuilding enterprises and participate in tenders for public-sector vessels through Indian partners. The Korea Marine Equipment Association, which brings together 304 companies, plans to open a representative office in Mumbai, while India and KOICA are working to establish a shipbuilding training center in Kochi.
