Kerala clears 18-acre lease for Cochin Shipyard’s ₹5,000 crore expansion

KOCHI: The Kerala government has approved the lease of 18.16 acres at Ramanthuruth, an island near Kochi, to Cochin Shipyard Ltd (CSL) for a major shipbuilding expansion involving an investment of around ₹5,000 crore.

The state cabinet approved the lease on Tuesday, with the proposed project expected to create around 2,000 direct jobs and generate further employment across ancillary industries, logistics and the wider maritime sector.

The state government will receive a basic annual lease payment of ₹1.45 crore, with total annual revenue rising to around ₹1.70 crore including GST.

At the centre of the expansion is a proposed Block Fabrication Facility (BFF), which would manufacture large steel sections used in ship construction.

The blocks would be fabricated, pre-outfitted, painted and finished at Ramanthuruth before being transported to CSL’s shipbuilding complex for final assembly at its new dry dock, according to sources at the shipyard.

The facility could allow CSL to shift a significant portion of vessel construction away from its main dock, reducing work required during final assembly and potentially shortening ship delivery schedules.

Ramanthuruth’s island location is expected to provide a logistical advantage, allowing large and heavy ship blocks to be transported by water to the main shipyard instead of relying on road transport.

The expansion comes as CSL increases its capacity to build and repair larger and more complex vessels.

Its Kochi complex has three dry docks, including a recently commissioned 310-metre-long dry dock with a width of 75 metres at its widest section and 60 metres at the narrower section. Equipped with a 600-tonne crane, the dock is capable of handling vessels including LNG carriers, capesize ships, jack-up rigs and aircraft carriers with docking displacement of up to 70,000 tonnes.

The new dry dock involved an investment of around ₹1,799 crore, while CSL’s International Ship Repair Facility at Cochin Port was developed at a cost of about ₹970 crore.

The proposed Ramanthuruth facility could complement that expanded capacity by providing a dedicated location for building large ship sections before they are transferred to the main yard for assembly.

The ₹5,000 crore investment could also have a broader impact on Kochi’s maritime manufacturing sector, creating additional demand for steel fabrication, welding, electrical and mechanical engineering, painting, logistics and marine transportation.

CSL, India’s largest shipbuilding and ship repair company, already operates specialised hull, machine, engine, electrical and pipe shops alongside extensive ship repair, crane, quay and dry-dock infrastructure in Kochi.

The Ramanthuruth project could further consolidate Kochi’s position as a major shipbuilding hub by extending CSL’s manufacturing operations beyond its existing yard and creating opportunities for ancillary maritime businesses around the region.