VOC Port invites bids for 2,500 acre Thoothukudi shipyard

CHENNAI: The VO Chidambaranar (VOC) Port Authority has invited bids for a consultant to prepare a detailed project report (DPR) for the proposed 2,500 acre greenfield shipbuilding cluster near the port, covering the shipyard capacity, marine infrastructure, land development and investment requirements.

The proposed cluster is being developed through National Shipbuilding - Heavy Industries Park Tamil Nadu Ltd (NSHIP-TN), a 50:50 joint venture between VOC Port and SIPCOT. The two entities signed an MoU in September 2025 to develop a mega shipbuilding cluster at Thoothukudi.

South Korea's HD KSOE signed an MoU for the proposed shipyard in April and a high-level HD KSOE delegation led by Young Hoon Kwon, director of HD Hyundai's global business division, met Chief Minister C Joseph Vijay on June 17 to discuss the project.

The proposed Rs 38,000-crore shipyard is planned with an annual capacity of 2.5 million gross tonnes and is expected to generate around 15,000 direct jobs, according to the Union government. The shipyard is proposed as the anchor facility for the wider 2,500 acre Thoothukudi shipbuilding cluster.

The DPR will assess the technical and commercial feasibility of the project, including the capacity and configuration of the shipyard, shipbuilding and ship-repair potential, production facilities and the types of vessels that could be targeted. This will be based on Indian and global demand, competing shipyards and potential customers, with the study also looking at annual vessel output, CGT capacity and steel throughput.

It will cover an approach channel, turning basin, berths and other marine assets. Topographical, bathymetric, hydrographic and geotechnical information will form part of the assessment, along with requirements for dredging, reclamation, ground improvement and shore protection.

A key part of the DPR will be the division between common infrastructure for the cluster and facilities to be developed by the anchor shipyard. It will set out the respective responsibilities of the project SPV and the anchor shipyard for ownership, funding, operation and maintenance of major infrastructure and marine assets.

The consultant will also assess the implications for fishing and other coastal communities and prepare measures for stakeholder and livelihood concerns, while the DPR will factor in the requirements arising from land development and the site's physical and regulatory constraints.

The cost assessment will cover dredging, reclamation, ground improvement, marine infrastructure, shipyard facilities and equipment, utilities, buildings, roads and other common infrastructure, as well as recurring costs such as maintenance dredging and infrastructure upkeep.

The proposed funding structure will examine government grants, equity, debt and private investment. The consultancy is to be completed in 26 weeks.