Cochin Shipyard, HD Korea ink MoU for long-term shipbuilding partnership

New Delhi [India], September 23 (ANI): Cochin Shipyard Limited (CSL) has signed a Memorandum of Understanding (MoU) with HD Korea Shipbuilding and Offshore Engineering (HD KSOE) for a long-term strategic collaboration in shipbuilding.

According to a statement from the Ministry of Ports, Shipping and Waterways, the MoU was exchanged during the landmark event "Samudra se Samriddhi - Transforming India's Maritime Sector", inaugurated by Prime Minister Narendra Modi on Saturday, at Bhavnagar, Gujarat.

At the time of signing both MoUs, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal and Union Minister of State Shantanu Thakur were present.

Also present were Jung Changin, Senior Vice President, Head of Global Business Management Division, Hyundai, and Madhu S Nair, CMD, Cochin Shipyard Limited.

This partnership seeks to combine CSL's legacy, infrastructure, and domestic expertise with HD KSOE's advanced technology and global experience, marking a significant step in strengthening India's shipbuilding capabilities, the statement said.

Under the MoU, CSL's 310-meter new dry dock, which was inaugurated by the Prime Minister of India in January 2024, will be utilised to construct large vessels such as Suezmax tankers, container ships, and Capesize bulk carriers, with a capacity of up to six vessels annually.

To support this, a dedicated Block Fabrication Facility (BFF) is planned at Kochi in approximately 80 acres, with an annual capacity of 1,20,000 MT, involving an investment of about Rs 3,700 crore, the ministry's statement said.

"The details of the proposed facility and layout was presented at the event. This initiative is expected to generate around 2,000 direct jobs and substantial indirect employment estimated at 2 to 5 times higher in sectors such as logistics, MSMEs, supply chain, and ancillary industries," the statement read.

The collaboration will also focus on joint execution of shipbuilding projects at CSL's existing facilities during the transition phase, while simultaneously exploring opportunities in new business areas, greenfield shipyards, and skill development. By enhancing production efficiency and delivering next-generation vessels, the partnership is aligned with national initiatives like Maritime India Vision (MIV) 2030 and Maritime Amrit Kaal Vision (MAKV) 2047, reinforcing the mission to position India as a global shipbuilding hub.

Additionally, CSL signed a second MoU with Guidance, the nodal agency of the Government of Tamil Nadu, in line with the Government of India's vision for developing shipbuilding clusters.

CMD of CSL, Madhu S Nair , MD and CEO of Guidance Tamil Nadu, and Darez Ahamed were present for the signing. As part of its long-term growth strategy, CSL is considering a greenfield investment of about Rs 15,000 crore to establish a state-of-the-art shipyard in Tamil Nadu in collaboration with a Korean partner.

In its first phase, the project is projected to create nearly 10,000 jobs--comprising 4,000 direct and 6,000 indirect opportunities--and may also include a modern ship repair facility, the ministry added. (ANI)

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