Rs 10,000 crore project proposal; Tata Group to enter shipbuilding sector, big boost for Kerala

THIRUVANANTHAPURAM: Chief Minister VD Satheesan said that a new proposal reached his table regarding turning Kerala into a port city. The Chief Minister announced that the Tata Group expressed interest in setting up a shipyard in Kerala and sought approval for a plan to invest $ 1 billion (about Rs 10,000 crore).

Chief Minister VD Satheesan revealed this in an interview with Bloomberg. The Chief Minister said that the government is seriously considering Tata's proposal and will take a final decision within a month. Kerala CM stated in the interview that the government will provide the required land for the project.

If true, this will be Tata Group's debut in the shipbuilding sector. Kerala is planning to establish shipbuilding and related services near the ports of Vizhinjam and Kochi. Tata is coming up with the shipbuilding plant at a time when Kerala is aiming to build more ports and a new maritime route project centred around the districts of Thiruvananthapuram, Kollam and Alappuzha. Meanwhile, there has been no official response from Tata on this matter.

Meanwhile, reports emerged that Adani Group has sold a portion of its stake in the Vizhinjam port to global shipping company MSC. The agreement between Adani and MSC is currently under consideration by the government.