The upcoming greenfield shipbuilding cluster in Tamil Nadu's Tuticorin, valued at roughly ₹38,000 crore, inevitably came up during Union shipping minister Sarbananda Sonowal's four-day visit to South Korea to boost maritime ties.
He met with HD Hyundai chairman Chung Ki Sun in Seoul, which has provided major updates on the path forward for the facility, touted as a 'second Ulsan'.
A joint working group (JWG) will now take charge of project development, the Ministry of Ports, Shipping and Waterways (MoPSW) said in a statement.
It added that talks were on to decide the structure of a joint venture (JV) to handle the project, with a Detailed Project Report (DPR) to be finalised within six months.
The project has already seen the formation of a special purpose vehicle (SPV)—called the National Shipbuilding and Heavy Industries Park Tamil Nadu Limited (NSHIP-TN)—between the SIPCOT and the V.O. Chidambaranar Port Authority (VOCPA).
After the project was granted in-principle approval from the Directorate General of Shipping (DG Shipping), the VOCPA in September had issued the work order for the Detailed Feasibility Report (DFR) of the cluster in consultation with HD Korea Shipbuilding & Offshore Engineering Co. Ltd. (HD KSOE), for which inspection work had begun at the proposed site.
The SPV had also floated a Request for Proposal (RFP) calling on global consultants to prepare the DPR for the greenfield shipbuilding cluster.
NSHIP-TN will facilitate the availability of suitable waterfront land, the development of related infrastructure and utilities, and obtaining statutory approvals. This will take place parallel to site assessments, infrastructure planning and preliminary dredging/reclamation studies for the project.
The proposed shipyard, which is also receiving support from the Shipbuilding Development Scheme (SbDS) under the MoPSW's ₹69,725 crore maritime support package, will have an estimated annual capacity of 2.5 million gross tonnage (GT).
"I am sure that apart from the export orders, the mega greenfield shipyard in Thoothukudi, Tamil Nadu would be instrumental in the construction of many of (the 400-plus vessels India needs over the coming years)," Sonowal said in a statement.
Notably, the Tuticorin project is a part of the VOYAGES agreement between the two nations to boost cooperation in shipbuilding, shipping, and maritime logistics.
Sonowal's earlier meetings also saw a number of Korean maritime stakeholders express interest in their Indian counterparts under this agreement:
- Discussions with Sejin Heavy Industries were focused on possible projects for the construction of large shipbuilding blocks, LPG and LNG cargo tanks, cryogenic structures, and other specialised marine equipment. Cochin Shipyard also discussed block fabrication with them.
- Talks with the Korea Marine Equipment Research Institute (KOMERI) looked at collaboration in marine equipment manufacturing, research and development, testing, certification, green propulsion and smart maritime technologies. Sonowal also noted that Korean expertise was important to the upcoming India Ship Technology Center.
- The HMM talks zoomed in on the possibility of reflagging its vessels with the Indian flag, recruiting Indian seafarers, utilising HKC-compliant Indian ship recycling facilities, and adding more Indian ports to its services.
