Tamil Nadu’s $4-Billion Hyundai Shipyard Plan Remains on Course

Chennai: Amid reports that state-owned shipbuilder Mazagon Dock Shipbuilders is exploring the development of a large shipbuilding cluster in Andhra Pradesh, Tamil Nadu’s proposed shipyard project at Tuticorin appears to remain on track. The indication comes after industries minister S Keerthana visited HD Hyundai Heavy Industries’ shipyard in Ulsan, South Korea, on Monday. The South Korean company expressed interest in setting up a shipyard at Tuticorin with an estimated investment of about $4 billion.

“I toured shipbuilding facilities, observed advanced production systems and held discussions on potential areas of cooperation. The proposed Thoothukudi greenfield shipyard is one of the earliest outcomes of the India-Republic of Korea maritime cooperation framework and reflects the growing strategic partnership between our two countries in the maritime sector. The project is envisaged as a mega greenfield shipyard with the capability to support large commercial vessel segments and strengthen India’s long-term shipbuilding capacity,” she posted on X on Tuesday.

In Dec 2025, HD Hyundai signed an agreement with the Tamil Nadu govt to establish the new shipyard. Under the arrangement, the state govt committed to providing incentives and subsidies, enhancing infrastructure and ensuring the availability of skilled talent, while HD Hyundai became the project partner for establishing the facility.

Subsequently, a special purpose vehicle, National Shipbuilding & Heavy Industries Park Tamil Nadu (NSHIPTN), was formed by V O Chidambaranar Port Authority (VOCPA) and the State Industries Promotion Corporation of Tamil Nadu (Sipcot) to develop the greenfield shipbuilding cluster.

According to state govt sources, the shipyard is being developed with an investment of $4 billion by HD Hyundai Heavy Industries. “An MoU was signed under which the SPV will create the required infrastructure. Sagarmala Finance Corporation, under the Union Ministry of Ports, Shipping and Waterways, will provide additional funding,” an official said.