A tripartite memorandum of understanding was signed on 20 April 2026 between HD Korea Shipbuilding and Offshore Engineering Co., Ltd. (HD KSOE), National Shipbuilding and Heavy Industries Park, Tamil Nadu Limited (NSHIP-TN) and Sagarmala Finance Corporation Limited (SMFCL) for the development of India’s first mega greenfield shipyard at Thoothukudi, Tamil Nadu. The agreement was exchanged during the State Visit of the President of the Republic of Korea and forms part of the India?ROK VOYAGES maritime cooperation framework. The facility is envisaged to have an annual capacity of two point five mn Gross Tonnage (GT).

The memorandum provides a basis for joint development, financing, construction and operation of the shipyard and identifies the proposed facility as the anchor for the Thoothukudi Shipbuilding Cluster being developed by NSHIP-TN. The techno?economic feasibility report has been completed and preparation of the detailed project report is underway, while NSHIP-TN has received in?principle approval from the National Shipbuilding Mission. Authorities expect the project to create about 15,000 direct jobs once operations stabilise and to generate substantial indirect employment across Tamil Nadu and the region.

The initiative is presented as one of the earliest implementation outcomes of the bilateral framework and is described by officials as a significant step towards realising India's Maritime Amrit Kaal Vision 2047, which targets a shipbuilding output of four point five mn GT per annum by 2047. The proposed Thoothukudi facility, with an anticipated annual capacity of two point five mn GT, is expected to reshape the commercial shipbuilding landscape and markedly enhance the country's existing capacity. The project is also intended to stimulate ancillary manufacturing, localisation of marine equipment, supply chain development and workforce skilling.

The government has introduced a comprehensive shipbuilding policy package of Rs 700 billion (bn) to accelerate the sector and international orders have followed, illustrating growing global confidence. Industry observers note recent contracts placed at Cochin Shipyard and Pipavav Shipyard as indicators of rising demand.