Rocky seabed helps Thoothukudi edge out other locations for greenfield shipbuilding projects

Thoothukudi looks attractive considering the geographical point of view in the East Coast area which is well protected from cyclones. 
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RAJESH N

Its rocky seabed was one of the major reasons that helped the port town of Thoothukudi in southern Tamil Nadu beat other locations for the setting up of new greenfield shipbuilding units by the public sector companies Mazagon Dock Shipbuilders Ltd (MDL) and Cochin Shipyard Ltd (CSL).

Rocky seabed is advantageous as continuous maintenance dredging will not be required. It is learnt that the two companies visited all the coastal states before zeroing in on Thoothukudi.

The projects will see a combined investment of ₹30,000 crore and generate employment for 55,000 people. CSL will invest ₹15,000 crore to build a commercial shipbuilding yard. Similarly, MDL will also invest ₹15,000 crore, creating employment for over 45,000 people. The projects are critical considering that Chinese shipyards are fully booked for the next three to four years, and no slots are available until the end of 2028.

India’s shipping fleet comprises about 1,600 vessels, with a gross tonnage (GT) of 14 million tonnes. India annually spends $75 billion on leasing global ships while owning about 2 per cent of the world’s total tonnage. India needs more ships to be built in the country to be self-reliant, said sources.

Biju George, Director (Shipbuilding), MDL, said the team visited sites at Andhra Pradesh – Mulapeta, Durgarajpatnam and Machhlipatnam and Thoothukudi. Finally, the port town in Tamil Nadu was selected. “We have sought 1,000 acres of land for the project,” he said.

A low-maintenance possibility

One of the major reasons for selecting Thoothukudi for being a rocky seabed giving good water depth of 16 m post capital dredging. This means, no maintenance dredging will be required. The siltation pattern in the east coast is generally favourable with relatively low requirement of maintenance dredging. The water depth will have to be maintained considering that vessels like Very Large Crude Carriers (VLCCs), which typically draw a draft of 16-20 m in unloaded conditions, are to be constructed and repaired, he told businesssline.

“The town has good connectivity through rail, road and air, development of ancillary around Tuticorin, development of green fuel bunkering, all weather working conditions, naturally protected coastal line makes it attractive for greenfield shipbuilding,” he said.

Further, MDL is acquiring controlling stakes in Colombo Dockyard PLC (CDPLC), a shipbuilding-cum-repair facility, which is located close to the international shipping lanes that criss-cross the Indian Ocean. CDPLC can act as an adjunct facility to the shipbuilding facility at Thoothukudi once developed.

As per George, the Thoothukudi facility can build commercial ships of all types in general. The largest vessel that can be built/repaired would be a VLCC which is 300 m+ in length. The shipbuilding cluster is expected to meet the domestic as well as the export demands, he said.

MDL will look at various options for collaboration, including with foreign players. Ships will be built for Indian as well as foreign owners, he added.

George said to create the facility, it may take between 5 and 7 years and full-fledged operation can be expected in eight years. A phased development can be planned which can kick-start partial utilisation of the facility for earning revenues in the next four years, he said.

Madhu S Nair, CMD, CSL, said the company plans to construct all types of ships, including large merchant vessels at Thoothukudi. The state government has built up about 2,000 acres of land in Tuticorin with an adequate waterfront. But CSL has not finalised anything yet, he told businesline.

Thoothukudi looks attractive considering the geographical point of view in the East Coast area which is well protected from cyclones. The area has amenable soil strata with less siltation. The proximity to the port, industrial connectivity to Tamil Nadu and the availability of abundant labour are all contributing factors to zeroing in on Thoothukudi to set up the facility, he said.

To a question on subsidies, he said the Tamil Nadu government has responded positively.

On the clientele for the ships, Nair said it will be a mix of both Indian as well as overseas customers, given the rising demand for ships globally. Indian companies which require ships include oil marketing companies, national fertiliser companies, steel majors like SAIL and others.

The yard, according to him, is actively involved in developing maritime clusters through strategic partnerships to align with the government’s vision to make India a global maritime hub, he said.

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Published on October 24, 2025