The state government of Tamil Nadu has signed two Memoranda of Understanding with Cochin Shipyard and Mazagon Dock Shipbuilders (MDL) to establish new green-field shipyards. The agreements involve a combined investment of about ₹300,000 crore (US$3.4 billion) and are expected to create around 55,000 jobs.

Each company will invest approximately ₹150,000 crore (US$1.7 billion) in separate facilities. Cochin’s project is projected to generate more than 10,000 jobs, including 4,000 direct positions and 6,000 indirect ones, while MDL’s facility is estimated to create over 45,000 jobs, with 5,000 direct and 40,000 indirect.

TRB Rajaa, Tamil Nadu’s Minister of Industries, Investment Promotion and Commerce, stated that the initiatives would strengthen the state’s maritime sector and contribute to India’s industrial base. India currently holds less than one percent of the global shipbuilding market.

The new projects follow several recent developments in India’s shipbuilding industry. Cochin Shipyard signed a long-term collaboration agreement with HD Korea Shipbuilding & Offshore Engineering, part of HD Hyundai Group, to cooperate in shipbuilding activities. Earlier this year, Cochin also announced plans for a new shipbuilding base at Cochin Port with an investment of about ₹20,000 crore. MDL, meanwhile, has prepared a land reclamation project to expand its shipyard in Mumbai.

MDL, established in 1774 and taken over by the Indian government in 1960, is India’s primary defense shipyard, with more than 800 vessels delivered, including warships, submarines, and destroyers. Cochin Shipyard, based in Kerala, is majority-owned by the Indian government with a 67.91% stake and has delivered around 70 vessels in recent years, ranging from merchant ships to naval platforms including aircraft carriers.