Cochin Shipyard partners with HD Korea to build large ships in India
COCHIN Shipyard Limited (CSL), the largest shipbuilding and maintenance facility in India, has signed an agreement with South Korea’s HD Korea Shipbuilding & Offshore Engineering (HD KSOE) to work together on building large ships in India.
The deal was announced at a maritime sector event, “Samudra se Samriddhi – Transforming India’s Maritime Sector”, inaugurated by Prime Minister Narendra Modi on Saturday in Bhavnagar, Gujarat.
The partnership aims to combine CSL’s facilities and local expertise with Korea’s advanced shipbuilding technology. CSL plans to use its recently built 310-metre dry dock in Kochi “to construct large vessels such as Suezmax tankers, container ships, and Capesize bulk carriers, with a capacity of up to six vessels annually.”
To support this expansion, CSL will set up a new shipbuilding unit on 80 acres in Kochi with an investment of about ₹3,700 crore.
“This initiative is expected to generate around 2,000 direct jobs and substantial indirect employment estimated at two to five times higher in sectors such as logistics, micro, small and medium enterprises (MSMEs), supply chain, and ancillary industries,” the government said in a statement.
CSL also signed a separate agreement with the Tamil Nadu government’s investment agency, Guidance, to explore building a new shipyard in the state. This project, involving an estimated ₹15,000 crore investment with its Korean partner, could create nearly 10,000 jobs in its first phase, including a modern ship repair facility, the statement said.
The Tamil Nadu government has also signed a memorandum of understanding for a ₹15,000 crore shipyard project by Mumbai-based Mazagon Dock Shipbuilders, which is expected to create 45,000 jobs.
On Saturday, PM Modi inaugurated and laid the foundation stone for multiple development projects related to the maritime sector worth over ₹34,200 crore. He also inaugurated the Mumbai International Cruise Terminal at Indira Dock.
The Finance Ministry has granted infrastructure status to large ships, fulfilling a long-pending demand of the shipping industry. A September 19 notification amended the harmonised master list to include large ships under the ‘Transport and Logistics’ category. The status applies to Indian-owned and flagged commercial vessels of 10,000 gross tonnage or more, and to vessels of 1,500 gross tonnage or more if built in India.
In February, Sitharaman had announced, “Large ships above a specified size will be included in the infrastructure harmonised master list. Shipbuilding clusters will be facilitated to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem.”
The move is seen as a push towards self-reliance as India currently accounts for only 0.06 per cent of global shipbuilding. Indians paid $109 billion in sea freight to foreign operators.
