Seoul/New Delhi, Dec 8 (NationPress) HD Hyundai, a prominent shipbuilding giant from South Korea, announced on Monday that it has entered into a preliminary agreement with the Tamil Nadu government for the establishment of a new shipyard.

Earlier, the central government identified five potential states, including Tamil Nadu, Gujarat, and Andhra Pradesh, for the project. According to a company spokesperson, HD Hyundai deemed Tamil Nadu as the ideal site for the new shipyard, as reported by Yonhap news agency.

The Tamil Nadu administration has prioritized the creation of a shipyard to rejuvenate the local economy and selected HD Hyundai as its partner, planning to provide incentives and subsidies for this venture, as stated in a company press release.

HD Hyundai chose the Thoothukudi area in Tamil Nadu due to its climatic conditions, which are comparable to those in Ulsan, the South Korean port city where HD Hyundai's shipyards are located.

This state is also home to major Korean enterprises, such as Hyundai Motor Co. and Samsung Electronics Co., with significant investments in nearby port facilities, increasing the prospects for future business growth, according to the release.

“India represents a market with robust growth potential, bolstered by the government's unwavering commitment to advancing the shipbuilding sector. We will persist in our collaborative efforts with India in the shipbuilding and offshore domains, positioning it as a new engine for growth,” an official from HD Hyundai remarked.

The Indian government is advocating the “Maritime Amrit Kaal Vision 2047” initiative, aiming to elevate India to one of the world’s top five shipbuilding and shipping nations.

According to Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, India views South Korea as a pivotal partner in enhancing shipbuilding capabilities and fortifying maritime security, highlighting New Delhi's ambition to rank among the world’s top five shipbuilding countries by 2047.

In a discussion with Yonhap News Agency, Sonowal emphasized that South Korea's rapid economic transformation offers valuable insights for India as it strives towards its “Viksit Bharat 2047” vision, which aims for India to become a developed nation by the centenary of its independence.

As part of this maritime initiative, New Delhi aims to secure a position among the world’s top ten shipbuilding nations by 2030 and ultimately be among the top five by 2047. The government plans to invest $24 billion into this initiative and expand its commercial fleet from 1,500 to 2,500 vessels to enhance self-reliance.

Achieving these ambitious targets will necessitate international collaborations, the minister noted, asserting that South Korea's advanced shipbuilding technology and proficiency in constructing “reliable and timely ships with high-quality specifications” make it an indispensable partner for India, as per the Yonhap report.

“South Korea’s unique advantages in precision engineering, LNG technologies, and highly efficient production systems could expedite India’s ascent in the global shipbuilding arena,” he added.