India has previously set goals of entering the global top 10 in ship ownership and shipbuilding by 2030, and reaching the top 5 by 2047. To achieve this, it has announced plans to expand ship ownership sevenfold to 100 million tons by 2047 and to increase shipbuilding production fortyfold to 4.5 million tons by 2037.

According to local Indian media on March 16, HD Hyundai signed a memorandum of understanding with the Tamil Nadu government in December last year, and a technical team of 15 to 20 members is currently stationed on-site coordinating design and construction plans. The Thoothukudi project is separate from the block manufacturing facility at Cochin Shipyard in Kochi; HD Hyundai is pursuing this project independently, with discussions reportedly underway regarding partial equity participation with the Maritime Development Fund (MDF).

The total investment amounts to $4 billion. The state government will hold 10–12% equity in exchange for providing land and infrastructure, MDF will hold 20–25% equity, and HD Hyundai will retain the majority of the remaining shares. Through its shipbuilding development plan, the Indian central government will provide infrastructure cost support of 10–12% and production-linked incentives of 15–25%, resulting in an expected subsidy effect equivalent to 45–47% of the total project cost.

HD Hyundai plans to position the Thoothukudi shipyard as an “anchor shipyard” to attract the entire supply chain and partner companies within a cluster spanning approximately 3,000 acres. The Tamil Nadu state government is reportedly also in contact with POSCO, separately from HD Hyundai, to negotiate a support package for establishing a steel plant.

HD Hyundai also plans to establish a marine crane manufacturing facility within the cluster. Thoothukudi, evaluated as having a location similar to Ulsan where HD Hyundai’s major shipyards are situated, features low salinity levels, reduced risk of typhoons and other natural disasters due to Sri Lanka serving as a natural shield, and an industry-friendly policy environment—factors that make it a trusted investment destination for Korean companies.

Source: BusinessKorea