\n\tTamil Nadu\u2019s reputation for \u2018policy continuity\u2019 is set to enter a fresh phase, with the C Joseph Vijay-led Tamilaga Vettri Kazhagam (TVK) government taking forward the much-anticipated \u20b938,000 crore shipbuilding project by the HD Hyundai group in Thoothukudi \u2014 with the backing of the opposition Dravida Munnetra Kazhagam (DMK).\u00a0<\/p>\n
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\n\tIn December 2025, the South Korean major had signed a deal with the DMK government for the proposed project.\u00a0<\/p>\n
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\n\tFor five decades, Tamil Nadu has by and large witnessed policy continuity with the state government alternating between the DMK and the All India Anna Dravida Munnetra Kazhagam (AIADMK); after Vijay took over as the chief minister in May 2026, there were concerns from the industry over the issue.\u00a0<\/p>\n
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\n\tAccording to sources aware of the development, HD Hyundai is yet to make any investment. On June 17, a high-level business delegation led by Young Hoon Kwon, director of the global business division of HD Hyundai (HD Korea Shipbuilding & Offshore Engineering \u2013 HD KSOE), met Vijay in Chennai. The CM assured the executives that the state government would take all the necessary measures for the speedy implementation of the project, and promised full administrative support and coordinated cooperation.\u00a0<\/p>\n
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\n\tThe DMK too chipped in with support, stating that \u201cwhen it comes to the growth of the state, we must work as one, cutting across political lines.\u201d \u201cThe foundation was laid by then CM M K Stalin. We must now build on it with the same rigour and long-term commitment, ensuring Tamil Nadu\u2019s maritime ambitions translate into lasting industrial capacity, deep employment generation, and a supply chain ecosystem that benefits the broader regional economy,\u201d former Industries Minister TRB Rajaa said.\u00a0<\/p>\n
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\n\tThe delegation\u2019s visit to Chennai comes ten days after the state\u2019s industries minister S Keerthana visited HD Hyundai Heavy Industries\u2019 shipyard at Ulsan in South Korea. \u201cThe proposed Thoothukudi greenfield shipyard is one of the earliest outcomes of the India-Republic of Korea maritime cooperation framework and reflects the growing strategic partnership between our two countries in the maritime sector. The project is envisaged as a mega greenfield shipyard with the capability to support large commercial vessel segments and strengthen India\u2019s long-term shipbuilding capacity,\u201d she wrote on social media.<\/p>\n
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\n\tThe project is crucial for India\u2019s target of becoming one of the top five shipbuilding countries by 2047. At present, its share in global shipbuilding is hardly 1 per cent. Andhra Pradesh too is working on a \u20b930,000 crore shipbuilding project at Visakhapatnam, to be executed by central public-sector undertakings (PSUs) like Mazagon Dock Shipbuilders.<\/p>\n
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\n\tThe state has also announced plans for the formation of a special purpose vehicle, the National Shipbuilding & Heavy Industries Park Tamil Nadu (NSHIPTN), to develop the project in Thoothukudi, along with the V O Chidambaranar Port Authority and the State Industries Promotion Corporation of Tamil Nadu (Sipcot).<\/p>\n
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\n\tThe memorandum of understanding for the project was formalised at the TNRising event in December 2025, followed by a detailed engagement in Korea in January 2026, where HD Hyundai shared the full vision for the future of NSHIPTN and the proposed Tamil Nadu facility. However, the formal signing took place in April 2026 while the model code of conduct for the upcoming Assembly polls was in place \u2014 NSHIPTN, Sagarmala Finance Corporation, and HD Hyundai sealed the deal at a summit held between Prime Minister Narendra Modi and South Korean President Lee Jae Myung in New Delhi.<\/p>\n
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\n\tThe concept was initially considered in 2022, when the state\u2019s department of minor ports looked into a proposal for large-scale shipbuilding. According to Rajaa, reports by industry intelligence had said global majors like HD Hyundai were actively exploring the possibility of setting up units in Gujarat, Andhra Pradesh, and Tamil Nadu. \u201cCrucially, the years 2023 and 2024 were spent deepening the proposition through extensive research and systematic global engagement,\u201d he said.<\/p>\n
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