With India’s large shipbuilding and ship repair base site determined, signaling the development of India’s shipbuilding industry strategy has been fully launched. At the same time, India is seeking cooperation with HD Hyundai Heavy Industries, Hanwha Ocean and other Korean shipbuilding enterprises, aimed at accelerating India’s “shipbuilding revitalization”.
According to India’s Economic Times (Economic Times), quoting unnamed Indian government officials, the Indian government has identified locations for large shipyards and ship repair bases in strategic coastal areas such as Tamil Nadu in the southeastern part of the Deccan Peninsula, Andhra Pradesh in the Bay of Bengal, and Gujarat in the western. Joint ventures between global shipbuilders such as HD Hyundai Heavy Industries and local Indian shipbuilders are also on the list.
A joint venture shipyard between HD Hyundai Heavy Industries and India’s state-owned Cochin Shipyard has been sited in the port city of Thoothukudi in the state of Tamil Nadu, reports said.The joint venture will be responsible for the construction of large vessels such as Very Large Crude Carriers (VLCCs) and is expected to involve an investment of around Rs100 billion (about $1.171 billion).
A senior Indian government official publicly announced: “HD Hyundai Heavy Industries and Cochin Shipyard are finalizing the site, which is expected to be finalized in Thoothukudi.” But HD Hyundai Heavy Industries is more cautious: “No decision has been made regarding the joint venture with Cochin Shipyard.”
In addition, Andhra Pradesh and Gujarat have also been identified as strategic locations by India. India is currently making every effort to attract investment from major global shipbuilders. India said that in addition to South Korea, global shipbuilders from the Netherlands, France and the Middle East are also interested in building factories locally.
In Gujarat, the state is developing a 2,000-acre shipyard near Kandla Port on a private lease basis, and South Korean maritime technology company KOMAC will be directly or indirectly involved in the project. It is reported that KOMAC has signed a memorandum of understanding (MOU) with India’s Accurate Industrial Controls, the only bidder for the Kandla shipyard, to provide technical consulting for the shipyard and the construction of the first vessel.
It is worth mentioning that South Korea’s KOMAC previously owned a ship design company in Shanghai, which went bankrupt during the industry downturn many years ago.
In addition, another South Korean shipbuilder, Hanwha Ocean, is in joint venture discussions around a potential investment site near the Kandla port in Gujarat.
Currently, India has formulated a long-term strategy to revitalize the shipbuilding industry and provided various incentives. The Indian government is supporting the development of the shipbuilding industry through various policies such as shipbuilding subsidies of up to 30% per year, tariff reductions on imported materials, and long-term financial support funds. For example, the Indian Finance Commission has finalized a shipbuilding support plan of 180 billion rupees (about $2,108 million) and allocated 250 billion rupees (about $2,927 million) for the shipbuilding industry in the federal budget for 2025-2026.
The move is aimed at providing capital support for the construction of shipbuilding infrastructure, including world-class port infrastructure. On this basis, India has set a goal of becoming one of the world’s top ten shipbuilding countries by 2030 and the world’s fifth largest shipbuilding power by 2047.
India currently has 28 domestic shipyards (20 of which are private enterprises), which mainly build small and medium-sized vessels and lack experience in building large vessels (such as VLCCs).
In order to achieve the “shipbuilding rise”, the Indian government is accelerating its pursuit of cooperation with global shipbuilders and has a strong interest in cooperating with the Korean shipbuilding industry. During a visit to South Korea in December last year, Shri T.K. Ramachandran, Deputy Minister of the Ministry of Ports, Shipping and Waterways, and Madhu Nair, President of Cochin Shipyard, visited three Korean shipyards – HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries, to explore the possibility of cooperation.