SHIPBUILDING CLUSTERS IN TAMIL NADU

The Government of Tamil Nadu proposes to establish a greenfield shipbuilding  cluster in Thoothukudi district, Tamil Nadu. To establish this cluster, V.O.  Chidambaranar Port (VOCPA) and State Industries Promotion Corporation of Tamil  Nadu (SIPCOT) have formed a Special Purpose Vehicle (SPV) named National  Shipbuilding & Heavy Industries Park Tamil Nadu Limited (NSHIPTN) and also signed  an MoU deliberating responsibilities of each party.
The Government of Tamil Nadu has informed that they have examined the  potential economic and employment impacts of shipbuilding and ship repair initiatives  for coastal districts in Tamil Nadu, including districts Ramanathapuram. The  establishment of this cluster is expected to enhance the shipbuilding industry capacity  and capability attracting ancillary industries and boosting economic activity and  enhancing supply-chain linkages in Tamil Nadu including neighbouring coastal districts  such as Ramanathapuram district. There is a potential for generation of high direct and  indirect employment on account of the high employment multiplier of 6.4 of the shipbuilding  industry. The NSHIPTN initiative is expected to generate more than 55,000 direct and  indirect employment opportunities across shipbuilding, ship repair, marine engineering,  fabrication, logistics and port services. The development of such clusters is also  expected to catalyse a strong ecosystem of ancillary industries including marine  equipment manufacturing, steel fabrication, electrical systems, coatings and precision  engineering. Beyond direct employment, these initiatives are likely to strengthen the  blue economy by expanding maritime supply chains and creating economic multipliers  across fisheries, logistics, Micro, Small, and Medium Enterprises (MSMEs) and service  sectors and thereby, supporting regional economic development.

The Government of Tamil Nadu is actively working towards strengthening port-led  industrialisation along the coastline and extending related infrastructure, skilling  programmes, MSME participation and supply-chain linkages to coastal districts such as  Ramanathapuram. The Tamil Nadu Shipbuilding Policy 2026 provides a range of  incentives including equity support, production-linked incentives (PLI), and plug-and

play infrastructure aimed at promoting shipbuilding and ship repair ecosystems while  enabling regional MSMEs to integrate into maritime supply chains.

Skill development and livelihood programmes are being promoted by the State  Government through sector-specific training modules in areas such as ship repair,  green vessel maintenance, marine engineering support services, fabrication, welding,  electrical work, logistics and port operations. These initiatives leverage existing fisher  community networks and maritime knowledge to support activities such as boat building  and marine services.

District-specific interventions are undertaken by the State Government to strengthen  infrastructure, industrialization and livelihood opportunities across southern coastal  districts. These initiatives include improving port connectivity, promoting marine-based  industries, strengthening fisheries infrastructure, supporting MSME clusters and  expanding skill development programmes.

This information was given by the Union Minister of Ports, Shipping, and Waterways, Shri Sarbananda Sonowal, in a written reply to the Lok Sabha.