India Strengthens Shipbuilding with New MoUs
Cochin Shipyard Limited (CSL) has taken a significant step in enhancing India’s shipbuilding capabilities by signing two pivotal Memorandums of Understanding (MoUs). The agreements, one with Hyundai Heavy Industries’ affiliate HD Korea Shipbuilding & Offshore Engineering (HD KSOE) and the other with Guidance, the Tamil Nadu government’s investment promotion agency, aim to bolster the country’s maritime self-reliance and indigenisation efforts. Union Ministers Sarbananda Sonowal and Shantanu Thakur were present at the signing ceremony, highlighting the importance of these collaborations.
Strategic Collaborations for Shipbuilding Growth
The partnership with HD KSOE will enable CSL to utilize its newly inaugurated 310-metre dry dock in Kochi, which is designed to accommodate large vessels, including Suezmax tankers and Capesize bulk carriers. This facility is expected to support the construction of up to six large vessels annually, significantly boosting India’s shipbuilding output. Additionally, CSL plans to establish a Block Fabrication Facility (BFF) covering 80 acres, with an impressive annual capacity of 120,000 metric tonnes. This ambitious project will require an investment of approximately ₹3,700 crore and is projected to create around 2,000 direct jobs, with indirect employment potentially reaching two to five times that number across various sectors, including MSMEs and logistics.
Moreover, the collaboration with HD KSOE will explore opportunities in greenfield shipyards, skill development, and new business segments. This initiative aligns with national programs such as the Maritime India Vision (MIV) 2030 and the Maritime Amrit Kaal Vision (MAKV) 2047, reinforcing India’s commitment to becoming a competitive player in the global shipbuilding industry.
Expansion Plans in Tamil Nadu
In a related development, CSL has also signed an MoU with Guidance Tamil Nadu to investigate a ₹15,000 crore greenfield shipyard project in the state, in collaboration with a Korean partner. This proposed facility is expected to include a ship repair unit and aims to generate nearly 10,000 jobs in its initial phase, comprising 4,000 direct and 6,000 indirect employment opportunities. Madhu S. Nair, Chairman and Managing Director of CSL, emphasized that this partnership seeks to merge CSL’s legacy and infrastructure with Korean technological expertise, further enhancing India’s role in the global shipbuilding landscape.
Both MoUs represent a crucial advancement in India’s strategy to establish itself as a competitive shipbuilding hub while reinforcing its dedication to indigenisation and maritime self-reliance.
