The government has selected sites in Andhra Pradesh, Tamil Nadu, and Gujarat for the development of major shipbuilding and repair centres, aiming to significantly enhance domestic maritime capabilities.

A senior official confirmed that Thoothukudi in Tamil Nadu is likely to host one of these mega facilities, with an anticipated investment of approx. Rs 10,000 crore. South Korean conglomerate HD Hyundai is reportedly in advanced talks with Cochin Shipyard (CSL) to jointly manufacture large vessels for intercontinental trade under the “Make in India” initiative.

This move comes in tandem with the Expenditure Finance Committee (EFC) nearing the conclusion of appraisals for a revised shipbuilding financial assistance policy worth Rs 18,090 crore and the establishment of a Rs 25,000 crore maritime development fund, both announced in the Union Budget 2025–26. Two other land parcels have also been earmarked for international partnerships, with companies from the Netherlands, France, and the Middle East expressing interest in establishing shipbuilding operations in India.

The government is also preparing enhanced financial support mechanisms to incentivise domestic manufacturing of large vessels, particularly those aligned with sustainable technologies such as green fuels and offshore wind farm installations. Additionally, the government is planning direct capital investments to develop necessary port infrastructure such as breakwaters and dredging facilities at shipyards.