5 days ago
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Mazagon Dock Limited (MDL), India’s premier shipbuilding company, is looking to put successful Andhra Pradesh aft having waited for Tamil Nadu to respond to its connection to physique a greenfield mega ship-building clump successful Thoothukudi.
The MDL had signed a woody with the Tamil Nadu authorities successful September 2025. It had publically committed an concern of ₹15,000-18,000 crore for the project, aft its committee had approved the committedness during MDL’s Q2 FY26 net telephone successful November 2025. The program was approved for forming a 1,050-acre greenfield shipyard intended to beryllium developed implicit a play of 10-12 years, aimed astatine targeting precise ample crude carriers (VLCCs) up to 3,00,000 DWT.
But now, aft the Tamil Nadu authorities has brought a overseas institution onboard for the strategically important clump project, allegedly without pursuing the owed process, MDL is seeking different options. The Tamil Nadu government’s determination has raised questions connected wherefore Indian companies were not fixed an accidental for competitory bidding for a strategical task that volition spot immense monetary subsidisation by the Centre and the State to the tune of thousands of crores. It comes astatine a clip erstwhile indigenisation is being fixed a propulsion nether the Maritime Amrit Kaal Vision 2047.
Failing successful its bid to unafraid this project, MDL present wants to put implicit ₹29,000 crore for a mega shipbuilding clump successful Andhra Pradesh. It has expressed involvement successful becoming the anchor capitalist there. A squad from MDL is soon expected to behaviour a feasibility survey for processing a planned shipbuilding capableness of 1.2 cardinal tonnes astatine the cluster.
The improvement has raised questions astir the shunting retired of Indian shipyards by the Tamil Nadu government, connected whether the State authorities inverted the prescribed procedure, subverted the competitory bidding process, and failed to support transparency astir 1 of India’s astir ambitious clump anchor shipyard projects.
Thoothukudi (Tuticorin) successful Tamil Nadu has been identified by the Government of India arsenic 1 of the premier locations for a greenfield mega-cluster, owed to its earthy advantages similar extended coastal land, earthy cyclone shielding, debased atmospheric salinity, proximity to planetary shipping lanes, and an existing deep-water port. These clusters are intended to people astir 1.2 cardinal Gross Tonnage per annum capacity.
As per the Union Government’s Shipbuilding Development Scheme Guidelines, notified by the Ministry of Ports, Shipping and Waterways (MoPSW) connected December 26, 2025, a sequential process has been laid down for the improvement of greenfield shipbuilding clusters.
But entree to the elaborate timeline of the task raises questions connected whether this series was subverted.
On September 19, 2025, Mazagon Dock Shipbuilders Limited (MDL) signed a Memorandum of Understanding with ‘Guidance Tamil Nadu’ for a greenfield shipyard connected India’s eastbound coast. Both MDL and Cochin Shipyard signed MoUs with Tamil Nadu for greenfield shipyards astatine Thoothukudi, with a combined stated concern of ₹30,000 crore, during the Government of India’s ‘Samudra se Samriddhi’ lawsuit successful Bhavnagar.
In November past year, MDL, during its Q2 FY26 net call, referred to a planned Thoothukudi greenfield shipyard with a full concern of ₹15,000–18,000 crore. Since then, it waited for a effect from the Tamil Nadu authorities and an Expression of Interest (EoI) process from the Special Purpose Vehicle (SPV).
Instead, a period later, a overseas institution announced the signing of an ‘Exclusive Business Cooperation Agreement’ with the Government of Tamil Nadu for a caller shipyard astatine Thoothukudi, during the TN Rising Investment Conclave successful Madurai, successful the beingness of past CM M.K. Stalin. HD Hyundai described it arsenic a program for a ‘second Ulsan’ with an concern reported astatine astir $2-4 billion. This happened connected December 7, 2025.
But the Shipbuilding Development Scheme (SbDS) Guidelines were formally notified by the Ministry of Ports, Shipping and Waterways lone connected December 26, a whopping 19 days aft the HD Hyundai exclusive statement was signed. Not conscionable that, adjacent the SPV was formed aft implicit a period of the agreement. In January this year, NSHIP TN (National Shipbuilding & Heavy Industries Park, Tamil Nadu) SPV was formally incorporated arsenic a 50:50 Joint Venture betwixt VOCPA and SIPCOT.
HD Hyundai was allegedly exclusively selected arsenic the Anchor Shipyard earlier the rules governing the enactment process existed, and earlier the instauration (the SPV) required to behaviour the enactment was formally incorporated. Despite repeated attempts, the Tamil Nadu Government did not respond to a elaborate database of questions.
