The Indian government has set up a special purpose vehicle (SPV), National Shipbuilding & Heavy Industries Park, Tamil Nadu, to develop a mega shipbuilding cluster at Thoothukudi. This SPV is a joint venture between the union government owned V. O. Chidambaram Port Authority and State Industries Promotion Corporation of Tamil Nadu. This is the first SPV to be formed after the finalisation of guidelines by the Ministry of Port, Shipping and Waterways to implement the Shipbuilding Development Scheme worth Rs 199.89 billion.
The greenfield shipbuilding cluster will span around 2,000 acres, including about 1,000 acres for shipyards and another 1,000 for ancillary industries and social infrastructure, with a 2 km waterfront. It aims to significantly boost India’s commercial shipbuilding capacity, create large-scale employment, and strengthen the nation’s maritime ecosystem through plug-and-play facilities for ship construction and repair. One anchor shipyard is expected to reach at least 0.5 million gross tonne capacity within 10 years from the date of commission of the facility.