$3.4bn shipyard in Tamil Nadu to build naval, cargo ships: Govt

The Indian government's shipbuilding hub that is to be established in the Thoothukudi district of the Southern Indian state of Tamil Nadu would be capable of constructing naval warships or cargo ships, based on demand, said Sarbananda Sonowal, the country's Minister for Ports, Shipping and Waterways. He elaborated that the shipbuilding hub would be capable of building Very Large Crude Carriers(VLCC), which are ships that can carry almost two million barrels of crude oil. The Minister was speaking at the Government-run Indian Maritime University's(IMU) 10th Convocation, which saw over 2,100 students graduating

Recently, the Indian Government announced that its defence firms Cochin Shipyard Limited(CSL) and Mazagon Dock Shipbuilders Limited(MDL) have inked MoUs with the Tamil Nadu Government to invest a total of Rs 30,000 crore ($3.4bn) for establishing a shipbuilding hub in Thoothukudi, Tamil Nadu, about 600 km south of the capital city Chennai. On the specifics of the project, it was mentioned that the Detailed Project Report(DPR) is to be prepared. A DPR is a comprehensive document that outlines a project's technical, financial, economic, legal, and environmental aspects.

CSL is the builder of India's first indigenous aircraft carrier, INS Vikrant, which has been serving the Indian Navy since 2022. CSL also builds a wide range of commercial ships and tugs for foreign Governments and private entities. MDL is known for building under license the French-origin Scorpene diesel-electric stealth submarines that are in service with the Indian Navy. MDL has also built India's frontline destroyer warships of the Kolkata-class and Visakhapatnam-class, among others.

Addressing the Convocation, Minister Sonowal said that India's prosperity and security are linked to the seas, and that investment in the maritime sector is being scaled up to 80 lakh crores(over $90bn). "Today, 9 of our ports rank in the Top 100 ports of the world, our port's turnaround time of 0.9 days is better than advanced maritime nations. We are constructing one of the largest container ports of the world at Vadhawan, north of Mumbai, Maharashtra," he said.

Referring to India's share in the seafaring profession, the Minister said that India had 1.25 lakh seafarers a decade ago, and today that number has grown to more than 3 lakhs. "India now ranks among the top three nations in the supply of the highest number of seafarers."

Emphasising the need for building and repairing cargo ships in India, the Minister stated that only about 5percent of the Export-Import cargo is carried on Indian owned/Indian-flagged vessels, resulting in Rs 6 lakh crores being paid annually to foreign sea freight service providers.

Via virtual mode, the Minister also inaugurated the Rs 305cr India Ship Technology Centre(ISTC) at the Visakhapatnam IMU campus, which will be responsible for the overall development of the capabilities of the Indian shipbuilding sector. The centre is meant to provide a common platform for the Indian shipbuilding industry by providing access to common facilities, skilling of future personnel, providing an ecosystem for ship design, R&D, engineering capabilities, among others. The facility is expected to foster collaborations between IMU, shipyards, research institutions, Government bodies, and create an ecosystem for knowledge exchange.