To boost the domestic shipbuilding industry, two major Indian shipyards have signed significant agreements with local governments to invest heavily in constructing new shipbuilding facilities.
The government of India’s Tamil Nadu state announced it has signed two memorandums of understanding with Cochin Shipyard and Mazagon Dock Shipbuilders (MDL) in the shipbuilding sector to establish two new green commercial shipyards in Tamil Nadu. The two projects represent a total investment of 300 billion rupees (approximately US$3.402 billion) and are expected to create 55,000 jobs.
Specifically, Cochin Shipyard and MDL will each invest 150 billion rupees (approximately US$1.701 billion) to establish new commercial shipbuilding facilities. These projects are projected to create over 10,000 jobs (including 4,000 direct and 6,000 indirect positions) and more than 45,000 jobs (5,000 direct and 40,000 indirect positions), respectively.
TRB Rajaa, Minister of Industries, Investment Promotion and Commerce for Tamil Nadu, India, stated that the two new commercial shipyards will not only propel the maritime industry’s development in Tamil Nadu but also become a vital force in safeguarding India’s security and sovereignty. He added: “These projects mark a key initiative in India’s advancement of maritime infrastructure and technological capabilities. The new shipyards will propel Tamil Nadu’s emergence as a global hub for shipbuilding and maritime innovation, creating unprecedented economic growth, employment opportunities, and sustainable development prospects in this sector.”
Data from S&P Global Commodity Insights shows that India’s current share of the global shipbuilding market is less than 1%. The advancement of these two major shipbuilding projects is expected to inject new vitality into India’s shipbuilding industry.
In related news, Cochin Shipyard recently signed a comprehensive memorandum of understanding with HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai Group’s shipbuilding operations, regarding “long-term cooperation in the shipbuilding sector.” Earlier this year, Cochin Shipyard also announced plans to establish a new shipbuilding base in Cochin Port with a total investment of 20 billion rupees. This facility will be constructed in collaboration with foreign partners and will be owned by Cochin Shipyard upon completion.
MDL also recently revealed plans to reclaim land near its main facility in Mumbai to increase shipbuilding capacity.
As India’s primary defense shipyard, MDL was established in 1774 and taken over by the Indian government in 1960. Renowned for constructing warships, submarines, and destroyers for the Indian Navy, it has delivered over 800 vessels.
Public records indicate that Cochin Shipyard is located in Kerala, southern India, with the Indian government holding a 67.91% stake. The facility possesses design, construction, and maintenance capabilities for various vessel types ranging from merchant ships to aircraft carriers. Over the past five years, it has delivered a total of 70 vessels, including 60 small merchant ships and 10 naval vessels. As India’s largest shipbuilding and repair base, Cochin Shipyard’s new dry dock and international ship repair center were inaugurated on January 17, 2024.