"India’s first large-scale shipbuilding hub takes shape in Tamil Nadu with the formation of a dedicated SPV."

An equal joint venture between Union government-owned V O Chidambaram Port Authority and the State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT) has set up a special purpose vehicle (SPV) to develop a mega shipbuilding cluster at Thoothukudi in Tamil Nadu.

The SPV, named National Shipbuilding & Heavy Industries Park, Tamil Nadu (NSHIP, TN), is the first to be formed following the Ministry of Ports, Shipping and Waterways’ notification of guidelines in December to implement the ₹19,989 crore Shipbuilding Development Scheme approved by the Union Cabinet.

According to the Ministry, the proposed greenfield shipbuilding cluster at Thoothukudi will strengthen India’s commercial shipbuilding capabilities, support greenfield industrial growth and generate large-scale employment, advancing the goal of building a globally competitive and self-reliant maritime ecosystem.

The greenfield cluster will be developed as a plug-and-play shipbuilding and repair ecosystem, with a waterfront of about 2 km and a landside area of nearly 2,000 acres. Of this, around 1,000 acres will be earmarked for shipyards, while the remaining area will be allocated for ancillary industries, internal and social infrastructure, and common facilities.

Each cluster is planned to house one or more large shipyards with a total capacity of around 1.2 million gross tonnage (GT) per annum. At least one anchor shipyard will have a design capacity of 0.5 million GT per annum, to be achieved within 10 years of commissioning.

The Union government plans to develop three to four such greenfield shipbuilding clusters across the country, with a maximum of one cluster per state. Under the scheme, approved greenfield shipbuilding clusters will receive 100 per cent capital assistance in the form of grants for eligible components.