A high-level delegation from South Korea’s HD Hyundai, one of the world’s largest shipbuilders, is in Thoothukudi to take forward the discussions on setting up a major shipbuilding facility in the coastal town, according to multiple sources in Thoothukudi.

The delegation held discussions with officials of V.O. Chidambaranar Port and senior Tamil Nadu government officials on Wednesday and Thursday regarding the proposed project, sources in know, told businessline.

The visit comes as the Centre plans to establish five greenfield shipbuilding clusters at strategic locations along India’s coastline with 100 per cent central capital assistance proposed for developing common infrastructure. Thoothukudi has emerged as the most advanced among the five proposed clusters, according to DG Shipping.

The Thoothukudi shipbuilding cluster is planned over 2,050 acres, with a waterfront of 2.4 km and a draft of about 5 metres. It is being developed adjacent to V.O. Chidambaranar Port and is the only cluster among the five where an anchor investor has been identified, according to the project details.

The special purpose vehicle (SPV) for the project has already been formed, a techno-economic feasibility report has been prepared and in-principle approval has been granted.

Of the land identified for the project, around 1,500 acres are understood to be available. This includes government land, land involving access arrangements with a private company, and around 300 acres of salt pans. However, acquisition of some salt pan land remains a challenge, with a section of owners raising objections. Discussions are under way to resolve the issue, sources add.

The latest visit by the HD Hyundai delegation is seen as a significant step towards taking forward the proposed investment, particularly as the Centre and the Tamil Nadu government push to position Thoothukudi as a major shipbuilding hub.

The other proposed shipbuilding clusters are at Dugarajapatnam in Andhra Pradesh, Kucchadi in Gujarat, Dighi in Maharashtra and Kendrapara in Odisha. These clusters are being planned with large land parcels and waterfront access to create integrated shipbuilding ecosystems.

HD Hyundai had announced in December 2025 that it had selected Thoothukudi for establishing a shipyard. While the company has not officially disclosed the investment proposed for the project, sources had then indicated that the investment could be in the region of $2 billion.

Source: The Hindu Business Line

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