&imwidth=800&imheight=600&format=webp&quality=medium "Indian government to setup shipbuilding hub for $3.4bn in Tamil Nadu")
In a significant move concerning India's maritime and shipbuilding sectors, government companies Cochin Shipyard Limited (CSL) and Mazagon Dock Limited (MDL) have inked MoUs with the Tamil Nadu government to invest a total of Rs 30,000crore ($3.4bn) in the Southern state. Making the announcement, Tamil Nadu Industries Minister Dr. TRB Rajaa said that investment is for establishing of shipbuilding hub in Thoothukudi district, about 600kms south of the state capital city Chennai. "This is going to be important for national security amid the present geopolitical situation," Rajaa said.
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 licence, the French-origin Scorpene diesel-electric stealth submarines that are in service with the Indian Navy. MDL has also build India's frontline destroyer warships of the Kolkata-class and Visakhapatnam-class, among others.
Elaborating on the investments, TRB Rajaa said that both firms have inked an MoU with the Tamil Nadu government to invest Rs15,000cr each, and that these investments would create a total of 55,000 direct and indirect jobs. On the overall development that this project would bring to Thoothukudi, Rajaa said that shipbuilding isn't only about iron and steel, and it involves a host of other allied industries, all of which would flourish in the region. He also acknowledged that the Tamil Nadu government worked closely with the Central government to get these investments.
On the planned start of the project, he said without elaborating further, "work will commence soon, important CEOs and international delegates are to come". He added that while Tamil Nadu is a leader in sectors such as automobiles, automobile parts, electronics manufacturing, leather, the state government is looking to diversify and facilitate investments from diverse sectors. Already, L&T operates their Kattupalli shipbuilding and ship repair facility near Chennai, where vessels for the Indian Navy and Indian Coast Guard are built. Further, the facility also has agreements with the US Navy to repair their ships. Auxiliary ships of the UK Royal Navy have also undergone repairs at the Kattupalli facility. The addition of the shipbuilding hub in Thoothukudi is expected to increase the significance of the region.
