Larsen & Toubro (L&T) plans to invest Rs 1,000 crore in its shipbuilding complex at Katupalli, near Chennai, to achieve its intended production capacities.

The company will undertake further development at the 892.11-acre Katupalli facility, which currently operates below its approved capacity. In 2009, L&T obtained environment clearance (EC), and Coastal Regulation Zone approval to produce 50,000 tonne per annum (TPA) for its modular fabrication facility (MFF), construct 25 ships, and conduct 60 ship repairs each year. However, the current infrastructure limits the company to 15 new ship constructions and 30 ship repairs annually.

The expansion will include new shops, fabrication units, paint shops, assembly shops, blasting shops, residential buildings, office spaces, warehouses, a skill development centre, and greenbelt development. Development work is expected to begin in October 2025 and take three years to complete. Company officials declined to comment.