MUMBAI: Andhra Pradesh Chief Minister N Chandrababu Naidu is alleged to be utilizing his clout as a companion within the ruling NDA Authorities on the Centre to lure HD Hyundai Heavy Industries Co Ltd to arrange a shipyard at Kakinada by dangling “extra incentives” than what the Tamil Nadu Authorities has provided the South Korean large to arrange an anchor facility within the greenfield shipbuilding cluster at Thoothukudi.
The facility video games surrounding a prized shipbuilding enterprise has put HD Hyundai Heavy Industries in a dilemma. Authorities officers in New Delhi, although, are usually not enamoured by the Andhra Pradesh authorities’s overtures to “poach” the world’s second greatest shipbuilder, the one world shipbuilder who has truly determined to erect a yard in India at Thoothukudi on the again of the ₹69,725 crore package deal authorised by the Union Cupboard final yr to spice up the nation’s shipbuilding ambitions.
“The Andhra Pradesh Authorities is alleged to have made overtures to get HD Hyundai shift its deliberate shipyard to Kakinada in Andhra Pradesh from Thoothukudi in Tamil Nadu,” an individual with information of the matter stated, asking to not be named as a result of the discussions are confidential.
The lobbying by the Andhra Pradesh Authorities to woo HD Hyundai was mentioned at a current assembly whereby officers are understood to have remarked that what the state authorities was pursuing was “not proper”.
“With nice issue, HD Hyundai was cajoled into growing a $4 billion anchor shipyard within the Thoothukudi greenfield shipbuilding cluster. Now, the Andhra Pradesh Authorities is engaging them to Kakinada, promising to present incentives which can be higher than what Tamil Nadu has provided for placing up a yard,” a second individual aware about the event stated. He too declined to be named.
On April 20, 2026, a tripartite Memorandum of Understanding (MoU) was signed between HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HD KSOE), the holding firm of HD Hyundai Heavy Industries; Nationwide Shipbuilding & Heavy Industries Park, Tamil Nadu Restricted (NSHIP-TN), a Particular Objective Car collectively promoted by Union government-owned V.O. Chidambaranar Port Authority (VoCPA); State Industries Promotion Company of Tamil Nadu (SIPCOT); and Sagarmala Finance Company Restricted (SMFCL) for the event of anchor shipyard on the deliberate shipbuilding cluster in Thoothukudi.
The MoU was exchanged within the presence of Sarbananda Sonowal, Union Minister for Ports, Delivery and Waterways through the state go to of Lee Jae Myung, President of the Republic of Korea (ROK), to India, underscoring the rising strategic partnership between the 2 nations within the maritime area.
The MoU outlines steps for the joint improvement, financing, development and operation of a mega shipyard at Thoothukudi with an envisaged annual capability of two.5 million Gross Tonnage (GT).
The Techno-Financial Feasibility Report (TEFR) for the challenge has already been accomplished, whereas preparation of the Detailed Mission Report (DPR) and Depth Feasibility Report are presently underway.
NSHIP-TN has additionally obtained in-principle approval from the Nationwide Shipbuilding Mission for the proposed greenfield shipbuilding cluster at Thoothukudi.
Given the progress on the Thoothukudi challenge, officers imagine that it was “not potential” to get HD Hyundai to shift to Kakinada. Moreover, it will not be “applicable” for the Centre to “suggest” a specific State to HD Hyundai for developing a shipyard.
“After HD Hyundai selected Thoothukudi, it is not going to be correct to persuade the Korean shipbuilder to shift to Kakinada. When an investor has come already and to entice that investor to shift to a different location shouldn’t be proper. However stress is coming from the highest,” stated the primary individual talked about earlier.
Apparently, HD Hyundai is being lured by the Andhra Pradesh authorities to Kakinada and to not the greenfield shipbuilding cluster deliberate at Dugarajapatnam, which has additionally obtained the in-principle approval from the Nationwide Shipbuilding Mission.
The Andhra Pradesh authorities, in response to the second individual, has provided land and waterfront on the Kakinada Gateway Port being developed by Auro Infra, to arrange the shipyard yard.
To make certain, it was the Stalin-led DMK authorities who managed to tug HD Hyundai to Thoothukudi in December 2025. After the DMK misplaced energy within the Might elections, the C Joseph Vijay-led authorities has vigorously pursued the HD Hyundai challenge at Thoothukudi.
In actual fact, the primary official journey that Tamil Nadu Industries Minister G Keerthana Sampath took after assuming workplace was to fly to South Korea in June to see the yard of HD Hyundai and talk about the challenge with prime officers of the corporate.
In July, Chandrababu Naidu deputed his son Nara Lokesh to move a delegation to South Korea as a part of a worldwide outreach to draw investments into Andhra Pradesh. Lokesh is the Minister for Info Expertise, Electronics & Communications, Actual Time Governance and Human Assets Growth of Andhra Pradesh.
The Andhra Pradesh delegation led by Lokesh held a gathering with HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HD KSOE), the holding firm of HD Hyundai Heavy Industries throughout which it pitched the State’s maritime potential and its strategic benefits for future shipbuilding and marine engineering enterprise.
“As Hyundai evaluates potential areas in Andhra Pradesh, Kakinada Gateway Port presents a compelling alternative with in depth seafront availability, massive contiguous land parcels, deep-draft marine infrastructure and a long-term concession framework,” Ram Reddy Ojili, Managing Director and CEO of Kakinada Gateway Port Ltd and Kakinada SEZ Ltd, who was part of the delegation, wrote on his LinkedIn account, on the day of the go to to HD KSOE.
“Kakinada Gateway Port’s built-in port-industrial ecosystem supplies a scalable platform for establishing a world-class shipbuilding facility and supporting Hyundai’s long-term development in India,” Ojili wrote, including that Kakinada Gateway Port has the potential to change into a serious shipbuilding and restore hub like Busan.
Shipbuilding trade sources stated that HD Hyundai is unlikely to take a wager on organising two greenfield yards in India.
“HD Hyundai desires to arrange a facility in Thoothukudi however now they’re in dilemma with the Andhra Pradesh Authorities pursuing them aggressively by providing extra incentives. It stays to be seen whether or not it should transfer to Kakinada or keep put in Thoothukudi,” a shipbuilding trade supply stated.
HD Hyundai couldn’t be reached for feedback.
