South Korea’s HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the parent company of HD Hyundai, is advancing plans for a $4 billion greenfield shipyard in Thoothukudi, Tamil Nadu. The facility is projected to produce 3.5–4 million gross tonnage (GT) of commercial vessels annually and is on schedule following a memorandum of understanding (MoU) signed with the Tamil Nadu government on December 7, 2025.
The shipyard will be developed independently by HD Hyundai, which plans to implement its vendor ecosystem in Thoothukudi, including shipbuilding cranes and an on-site steel plant, with POSCO in discussions for the latter. The Tamil Nadu government’s industrial agency, SIPCOT, may acquire a 10–12% equity stake, while the Maritime Development Fund (MDF) is expected to hold 20–25%, allowing HD Hyundai to maintain majority ownership.
The estimated project cost sits at around $4 billion, with additional infrastructure expenses of ₹4,000 crore. The central government will contribute 10–12% of the project cost through the Shipbuilding Development Scheme, while Tamil Nadu will provide a 25% capital expenditure subsidy and another 10–12% for land and infrastructure, totaling 45–47% support of the project cost.
This initiative marks the third major shipbuilding endeavor in Thoothukudi, following Cochin Shipyard and Mazagon Dock Shipbuilders, emphasizing HD Hyundai’s long-term strategy to expand in India and boost domestic shipbuilding capabilities.
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