India and South Korea’s HD Hyundai have advanced plans for a $4 bn greenfield shipyard in Thoothukudi, Tamil Nadu, after high-level discussions during Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal’s four-day visit to South Korea. The proposed facility is being developed under the Government of India’s Shipbuilding Development Scheme.

Sonowal met Chung Ki-sun, chairman of HD Hyundai, to discuss the next steps for the project. HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the group’s shipbuilding arm, reiterated its intention to participate as the primary strategic investor.

A joint working group will oversee development of the project, while India and HD Hyundai work towards finalising a joint venture structure. The Detailed Project Report (DPR) is to be completed within six months, after which the proposed capacity and other technical details will be validated.

The shipyard is planned to have an annual shipbuilding capacity of approximately 2.5 mn gross tonnage (GT). If completed as envisaged, it would become India’s largest commercial shipyard and add significant capacity to the country’s maritime manufacturing sector.

The initiative follows a memorandum of understanding signed on 20 April 2026 between HD KSOE, the National Shipbuilding & Heavy Industries Park and Sagarmala Finance Corporation. A special purpose vehicle, National Shipbuilding and Heavy Industries Park Tamil Nadu (NSHIP-TN), has already been established by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and the V.O. Chidambaranar Port Authority.

The joint working group and the DPR process are expected to determine the project’s final structure, investment arrangements and development timeline. The proposed shipyard is part of wider efforts to strengthen India’s domestic shipbuilding capabilities and attract strategic international participation in the sector.