CHENNAI: The state’s proposed $4 billion shipbuilding complex at Thoothukudi moved a step closer to reality on Wednesday after a delegation from South Korea’s HD Hyundai Group met Chief Minister C Joseph Vijay and expressed interest in fast-tracking the project.
A high-level business delegation led by Young Hoon Kwon, director of Global Business Division of HD Hyundai (HD Korea Shipbuilding & Offshore Engineering - HD KSOE), the shipbuilding arm of HD Hyundai, reviewed progress of the proposed facility and discussed the next steps for implementation with the chief minister and senior state officials.
The meeting at the secretariat signals renewed momentum for what could become one of India’s largest shipbuilding investments, with the potential to generate around 15,000 direct jobs and transform Thoothukudi into a major maritime manufacturing hub.
The development comes a week after Industries Minister S Keerthana in her first overseas official engagement since the formation of the new government reaffirmed Tamil Nadu’s commitment to the project during meetings in South Korea.
The project assumes significance as India seeks to expand domestic shipbuilding capacity, reduce dependence on foreign shipyards and build a stronger maritime manufacturing ecosystem. States are increasingly competing to attract large-scale investments linked to global supply chains and strategic industries.
HD Hyundai signed a MoU with the Tamil Nadu government last year to explore setting up a modern shipbuilding complex in Thoothukudi.
The proposed facility is envisioned as an integrated shipbuilding and heavy engineering complex catering to both domestic and export markets. Apart from direct employment, the project is expected to spur the growth of ancillary industries, logistics services and engineering suppliers across southern Tamil Nadu.
To facilitate the development, the state has established a special purpose vehicle, National Shipbuilding & Heavy Industries Park Tamil Nadu Ltd (NSHIPTN), jointly promoted by SIPCOT and the VO Chidambaranar Port Authority. The project has also received in-principle approval from the Directorate General of Shipping, a key regulatory milestone.
According to officials, HD Hyundai conveyed its eagerness to commence development activities at the earliest. The CM assured the delegation of full administrative support and expedited clearances to facilitate implementation.
The project would add a new dimension to Tamil Nadu’s industrial base, which is currently anchored by automobiles, electronics, textiles and renewable energy manufacturing. If executed at the proposed scale, the shipyard could position Thoothukudi as one of India’s most significant shipbuilding and marine engineering clusters, leveraging its port infrastructure and strategic location along key maritime trade routes.
The meeting was attended by Industries Minister S Keerthana, Chief Secretary M Sai Kumar, senior officials from the industries department, SIPCOT, TIDCO and Guidance Tamil Nadu, along with executives from HD Hyundai’s global business division.