Thoothukudi's mega shipyard takes shape as land, rehabilitation plans advance

Thoothukudi, historically known as the Pearl City, is being recast as a prospective maritime-manufacturing hub in southern Tamil Nadu, with a proposed greenfield shipyard positioned as the anchor of a wider industrial ecosystem. Comparisons are increasingly being drawn with Ulsan, the South Korean city whose shipbuilding cluster underpins a broader industrial base.

The project envisages an investment of about ₹38,000 crore and an annual capacity of 2.5 million Gross Tonnage. A tripartite Memorandum of Understanding has been signed for what is described as India's first mega greenfield shipyard, bringing together HD Korea Shipbuilding & Offshore Engineering Co Ltd, National Shipbuilding and Heavy Industries Park, Tamil Nadu Limited, and Sagarmala Finance Corporation Limited. NSHIP-TN is a Special Purpose Vehicle jointly promoted by the V.O. Chidambaranar Port Authority and the State Industries Promotion Corporation of Tamil Nadu.

Land and planning

In the first phase, roughly 1,700 acres have been identified across the revenue villages of Mullakadu (1), Mullakadu (2) and Pazhayakayal. The parcel comprises about 1,660 acres of government poramboke land and 40 acres of patta land. A government order transferring the land to SIPCOT has been issued; SIPCOT will build common infrastructure along with the port authority.

Planning has moved past the conceptual stage. The port authority has issued a work order for a detailed feasibility report in consultation with HD KSOE, and inception work has begun at the site. A Request for Proposal has also been floated to engage global consultants for the detailed project report.

Livelihood concerns and rehabilitation

Questions persist over salt-pan land within the project area and its effect on salt-pan labourers, producers and fishermen. Of the government poramboke land, 455 acres had been leased to Tuticorin Alkali Chemicals and Fertilizers Limited, a sister concern of SPIC, Thoothukudi, while 300 acres were leased to salt producers operating under Kovalam Thanpaadu Uppu Urpathiyalar Sangam and Ponmadasamy matrum 107 Nabargal. More than 150 acres used by salt producers is reportedly watercourse poramboke land.

The district administration has completed an enumeration of those dependent on the affected area, identifying around 50 fishermen families, 350 labour families, 447 labourers and 109 salt producers. Officials have held discussions with stakeholders on proposed rehabilitation and compensation measures.

The proposed package includes house site pattas and government-built pucca houses, one-time resettlement assistance, and support for fishing boats and outboard motors for affected fishing families. For salt producers, it offers alternative sites in the Vaippar region, infrastructure for salt production and one-time resettlement assistance. Salt-pan labourers are to receive skill development and vocational training in maritime and allied trades, priority employment in the anchor and ancillary sectors, and either employment for one eligible member per family in the industrial cluster or a one-time lump-sum payment. The Revenue Department has submitted an estimate of the funds required.

Skilling and employment

Once stabilised, the project is expected to generate 15,000 direct jobs, besides thousands more through ancillary industries. Building large commercial vessels demands specialised skills such as coded welding, steel fabrication, electrical work and pipe-fitting — areas where local experience in fishing and boat-building may not be sufficient on its own.

Susanta Kumar Purohit, Chairperson of the VOC Port Authority, said the authority had already shown that industry-linked training can lead to employment, and that a dedicated curriculum covering coded welding, steel fabrication and pipe-fitting would be developed so local youth can access jobs emerging through the shipyard. A senior official of Guidance Tamil Nadu said discussions on human resource requirements were under way and steps would be taken to develop the needed workforce.

Sankar Marimuthu, president of the All India Chamber of Commerce and Industries, Thoothukudi, noted that local familiarity with country boat and mechanised fishing boat construction could provide a base for the emerging ecosystem. The project is expected to strengthen the state's port-led economy and Thoothukudi's standing as a maritime industrial cluster.