Tamil Nadu is advancing discussions with HD Hyundai on its proposed Thoothukudi shipyard as Andhra Pradesh also seeks to attract the South Korean shipbuilding major’s investment.
As States vie for the mega shipbuilding investment from South Korea’s HD Hyundai, Tamil Nadu Industries Minister Keerthana is set to have a meeting with key members of HD Hyundai, along with the Guidance Tamil Nadu team in Chennai on Wednesday.The meeting will advance discussions on the company’s investment in the Thoothukudi shipping cluster following MoUs signed earlier, and it follows a recent site visit by the HD Hyundai team in Thoothukudi, sources in the know told businessline.businessline reported last week that a high-level delegation from HD Hyundai was in Thoothukudi. The delegation held discussions with officials from V.O. Chidambaranar Port and senior Tamil Nadu government officials last week on the proposed project, sources said.Thoothukudi emerges as leading shipbuilding clusterThe visit comes as the Centre plans to establish five greenfield shipbuilding clusters at strategic locations along India’s coastline with 100 per cent central capital assistance proposed for developing common infrastructure. Thoothukudi has emerged as the most advanced among the five proposed clusters, according to DG Shipping.The other proposed shipbuilding clusters are at Dugarajapatnam in Andhra Pradesh, Kucchadi in Gujarat, Dighi in Maharashtra and Kendrapara in Odisha. These clusters are being planned with large land parcels and waterfront access to create integrated shipbuilding ecosystems.HD Hyundai investment draws interest from StatesHD Hyundai inked an MoU earlier in December 2025 in Tamil Nadu and said it was selecting Thoothukudi to establish a shipyard. While the company has not officially disclosed the proposed investment, sources then indicated it could be around $2 billion.However, Andhra Pradesh Industries Minister Lokesh Nara’s recent visit to the company in Korea has sparked speculation. With Tamil Nadu and Andhra Pradesh strongly wooing the South Korean giant, it remains to be seen where the investment finally lands.Published on September 9, 2026
