Cochin Shipyard Gets 18.16 Acres for ₹5,000 Crore Shipbuilding Facility in Kerala
Under the approved lease arrangement, the Kerala government will receive ₹1.45 crore annually from the land
The Kerala government has approved the lease of 18.16 acres of land at Ramanthuruth near Kochi to state-run Cochin Shipyard Limited (CSL) for setting up a major ship-block building facility involving an estimated investment of ₹5,000 crore.
The project is expected to create around 2,000 direct jobs and generate significant additional employment through ancillary industries and the wider shipbuilding ecosystem.
The land, located on an island near Kochi city, will be leased to the Central Public Sector Undertaking. The Kerala government is expected to receive an annual lease amount of ₹1.45 crore, which would rise to approximately ₹1.70 crore including GST.
₹5,000 Crore Investment by Cochin Shipyard
The Cabinet decision clears a proposal that had been under consideration for some time and enables CSL to move ahead with the planned facility.
Kerala Chief Minister V.D. Satheesan said the Cabinet had approved the leasing of the 18.16-acre Ramanthuruth land to Cochin Shipyard for constructing ship blocks.
The Chief Minister said the project would bring large-scale employment and strengthen Kerala’s position in the shipbuilding sector. It could also create opportunities for further investments and the development of supporting industries around Kochi.
Block Fabrication Facility to Support New Dry Dock
According to sources, Cochin Shipyard proposes to establish a large Block Fabrication Facility (BFF) at the site.
The facility will allow steel blocks used in ship construction to be fabricated, pre-outfitted, painted and finished before being transported to CSL’s new dry dock as large, ready-to-use sections.
The blocks can then be assembled at the dry dock, allowing the shipyard to shift a substantial part of the fabrication and preparation process away from the dock itself.
This is expected to improve production efficiency, reduce construction time and help CSL accelerate vessel deliveries.
2,000 Direct Jobs Expected
The proposed facility is expected to create around 2,000 direct employment opportunities, in addition to indirect jobs generated through contractors, suppliers, logistics providers and ancillary industries.
The project could therefore have a wider economic impact on Kochi’s maritime and industrial ecosystem.
The development is also expected to strengthen Kerala’s position as a major shipbuilding and maritime hub, with Kochi already emerging as an important centre for ship construction, repair and related marine activities.
Kerala to Earn Annual Lease Revenue
Under the approved lease arrangement, the Kerala government will receive ₹1.45 crore annually from the land.
Including GST, the annual amount is expected to be around ₹1.70 crore.
The lease was approved following discussions between the Kerala government and Cochin Shipyard. According to the Chief Minister, the proposal had been pending for some time and was cleared after discussions with the Central PSU.
The project represents a significant expansion of shipbuilding infrastructure in Kerala and could enhance CSL’s capacity to handle larger and more complex shipbuilding programmes while strengthening Kochi’s position on India’s maritime map.
