India's shipbuilding industry is gaining momentum, underscored by Cochin Shipyard Limited's (CSL) strategic Memorandum of Understanding (MoU) with HD Korea Shipbuilding & Offshore Engineering (HD KSOE). This collaboration signifies a crucial step towards realizing the nation's "Atmanirbhar Bharat" (self-reliant India) vision in the maritime sector.
The MoU between CSL and HD KSOE was formalized during the "Samudra se Samriddhi – Transforming India's Maritime Sector" event in Bhavnagar, Gujarat, marking a commitment to long-term strategic cooperation in shipbuilding. The partnership aims to fuse CSL's established infrastructure, domestic knowledge, and experience with HD KSOE's advanced technology and global shipbuilding expertise.
Under the agreement, CSL will utilize its 310-meter dry dock in Kochi, inaugurated in January 2024, to construct large vessels, including Suezmax tankers, container ships, and Capesize bulk carriers. This facility is projected to have the capacity to build up to six such vessels annually. To support this ambitious construction plan, CSL is planning a dedicated Block Fabrication Facility (BFF) in Kochi, spanning approximately 80 acres, with an annual capacity of 120,000 MT and an investment of around ₹3,700 crore. The BFF project is expected to generate approximately 2,000 direct jobs and create substantial indirect employment in sectors like logistics, MSMEs, supply chain, and ancillary industries.
In addition to the collaboration with HD KSOE, CSL is also considering a greenfield investment of approximately ₹15,000 crore to establish a new shipyard in Tamil Nadu, also in collaboration with a Korean partner. For this project, CSL has signed a second MoU with Guidance, the nodal agency of the Government of Tamil Nadu, aligning with the Indian government's vision for developing shipbuilding clusters. The Tamil Nadu shipyard project is expected to generate nearly 10,000 jobs in its initial phase, including approximately 4,000 direct and 6,000 indirect employment opportunities. This project may also include a modern ship repair facility.
These initiatives align with the government's Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, strategic frameworks supported by initiatives like the ₹250 billion Maritime Development Fund. The fund aims to accelerate investment in shipbuilding, port modernization, and infrastructure upgrades.
While India possesses a robust maritime infrastructure with a 7,500-kilometer coastline and 12 major ports, its share of the global shipbuilding market remains less than 1%, lagging behind South Korea, Japan and China. The Indian government aims to be among the top 10 countries globally for shipbuilding and ship ownership and increase the share of global port cargo handled at Indian ports threefold. To achieve this, the government has announced schemes with an investment of over ₹70,000 crore to boost the shipbuilding sector. These schemes are expected to create nearly two crore direct and indirect jobs.
HD Korea Shipbuilding & Offshore Engineering (HD KSOE), a part of HD Hyundai, is a global leader in shipbuilding and offshore engineering. HD KSOE oversees the operations of major shipyards like Hyundai Heavy Industries. The collaboration between CSL and HD KSOE aims to leverage HD KSOE's expertise in designing and constructing commercial vessels, naval platforms, and offshore infrastructure.
Through strategic partnerships, investments in infrastructure, and a focus on technological advancement, India is taking concrete steps to elevate its shipbuilding industry and emerge as a significant player in the global maritime market.
