The Tata Group has sought approval to invest 100 billion rupees ($1 billion) in shipbuilding in Kerala, according to the chief minister of the southern Indian state.
“Tata is ready to invest on shipbuilding,” V.D. Satheesan said in an interview at Thiruvananthapuram. “We are going to provide the land” to the Indian conglomerate. The state government is favorably considering the proposal and it is likely to approve it within a month, he added.
The investment will add a new line of business for the $180-billion conglomerate that already makes coffee to luxury cars and steel products to smartphones. Adani Group already has its new mega port — a deepwater transshipment hub near India’s southernmost tip — at Vizhinjam, which has secured a $1.4 billion commitment from MSC Mediterranean Shipping Co. The MSC investment is currently being reviewed by the Satheesan administration.
Adani’s New Mega Port to Lure World’s Biggest Ships to India
Fishermen arrive at the Vizhinjam village adjacent to the Vizhinjam transshipment container port, developed by Adani Ports and Special Economic Zone Ltd.
A Tata Group representative did not immediately comment on the proposed investment.
Tata’s foray into the sector comes as India seeks to rapidly scale up its shipbuilding capacity and secure a larger role in global maritime trade. India and South Korea, which has the world’s second-largest shipbuilding industry behind China, agreed in April to deepen cooperation in this sector.
As for Kerala, it is aiming to capture more of the maritime value chain by expanding into shipbuilding, repair and other activities near major ports like Vizhinjam and Kochi.
The chief minister didn’t give details on the capacity or a timeline for the start of production.
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