Hyundai Advances $4 Billion Mega Shipyard Project in Tamil Nadu After Signing MoU.

South Korea’s HD Hyundai Heavy Industries has moved closer to establishing a major $4 billion greenfield shipyard at Thoothukudi in Tamil Nadu, following the signing of a memorandum of understanding (MoU) in New Delhi on April 20.

The MoU was signed during the state visit of Lee Jae Myung between HD Korea Shipbuilding & Offshore Engineering Co. Ltd (HD KSOE), the holding company of HD Hyundai Heavy Industries, the National Shipbuilding & Heavy Industries Park, Tamil Nadu (NSHIP-TN), and the Maritime Development Fund represented by Sagarmala Finance Corporation Ltd.

The agreement marks a key step in India’s broader ambition to emerge among the world’s top 10 shipbuilding nations by 2030 and reach the top five by 2047. HD Hyundai is expected to become the first foreign shipbuilder to establish a shipyard in India, supported by a ₹69,725 crore government package aimed at boosting domestic shipbuilding capacity.

The CEO of HD Hyundai was part of the delegation led by the South Korean President during the visit. However, the official Press Information Bureau statement referred only to the project’s location in “southern India,” without naming Tamil Nadu, citing Model Code of Conduct restrictions ahead of state elections.

The NSHIP-TN project is a joint venture between the Union government-owned VO Chidambaranar Port Authority and SIPCOT, aimed at developing a large shipbuilding cluster at Thoothukudi. HD Hyundai is expected to serve as the anchor shipyard for one of four such planned clusters across India.

The MoU is non-binding and covers joint development, financing, implementation, and operation of the proposed shipyard. Government sources said the National Shipbuilding Mission has already granted in-principle approval for the cluster, enabling preparatory work for final project clearance.

Officials added that while SIPCOT acts as the cluster developer and facilitator, the selection of the anchor shipyard rests with NSHIP-TN. The overall development of the cluster is expected to gain momentum once the anchor investor is fully onboarded, with investment execution largely driven by the shipyard partner.