India’s shipbuilding ambition takes shape with CSL’s MoU with HD Korea for Long-Term Shipbuilding Collaboration

State-owned shipbuilder, Cochin Shipyard Ltd (CSL), has signed a memorandum of understanding (MoU) with HD Korea Shipbuilding & Offshore Engineering (HD KSOE) for a long-term strategic collaboration in shipbuilding.

Mint reported in April that CSL is in talks with Korean companies to build ships near its existing shipbuilding facility in Kerala.

This partnership seeks to combine CSL’s legacy, infrastructure, and domestic expertise with HD KSOE’s advanced technology and global experience, marking a significant step in strengthening India’s shipbuilding capabilities.

In addition to its shipbuilding plan in Kerala, CSL has also signed an MoU with Guidance, the nodal agency of the Tamil Nadu government, in line with the Union government’s vision for developing shipbuilding clusters.

As part of its long-term growth strategy, CSL is considering a greenfield investment of about ₹15,000 crore to establish a state-of-the-art shipyard in Tamil Nadu in collaboration with a Korean partner.

The ministry's statement said the project is projected to create nearly 10,000 jobs in its first phase—comprising 4,000 direct and 6,000 indirect opportunities—and may also include a modern ship repair facility.

Under the MoU, CSL’s 310-m new dry dock, which was inaugurated by Prime Minister Narendra Modi on 17 January 2024, will be utilized 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, a dedicated Block Fabrication Facility (BFF) is planned for Kochi, covering 80 acres and with an annual capacity of 120,000 million tonnes. The investment is 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, ministry of ports, shipping and waterways said in a statement.

The collaboration will also focus on joint execution of shipbuilding projects at CSL’s existing facilities during the transition phase, while simultaneously exploring opportunities in new business areas, greenfield shipyards, and skill development.

By enhancing production efficiency and delivering next-generation vessels, the partnership is aligned with national initiatives like Maritime India Vision (MIV) 2030 and Maritime Amrit Kaal Vision (MAKV) 2047, reinforcing the mission to position India as a global shipbuilding hub, the statement said.