HD Hyundai shipyard project faces competition between Tamil Nadu and Andhra Pradesh

South Korean shipbuilder HD Hyundai is advancing plans for a $4 billion mega shipyard in Thoothukudi, Tamil Nadu, though the project faces potential competition from Andhra Pradesh. The proposed greenfield facility, intended to serve as an anchor for a shipbuilding cluster, aims for an annual capacity of approximately 2.5 million gross tonnes.

The project is supported by a tripartite memorandum of understanding between HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the National Shipbuilding & Heavy Industries Park Tamil Nadu (NSHIP-TN), and Sagarmala Finance Corporation. Technical feasibility studies are currently underway, and the site has received in-principle approval from the National Shipbuilding Mission.

However, the Andhra Pradesh government is reportedly attempting to lure the company to Kakinada by offering land, waterfront access, and incentives that may exceed those provided by Tamil Nadu. This lobbying has reportedly caused uncertainty and drawn reservations from central government officials in New Delhi, who have expressed concerns regarding an investor being persuaded to move after already selecting a location. Industry sources suggest HD Hyundai is unlikely to establish two separate greenfield shipyards in India.