Kerala to Lease 18.16 Acres at Ramanthuruth to Cochin Shipyard for ₹5,000 Crore Ship Block Fabrication Facility
The Kerala government has approved the lease of 18.16 acres of land at Ramanthuruth, on an island near Kochi city, to state-run Cochin Shipyard Limited (CSL) for a ship block building facility involving an investment of around ₹5,000 crore. Chief Minister V.D. Satheesan announced the Cabinet decision, which clears a proposal that had been under consideration for some time.
According to CSL sources, the company plans to establish a large Block Fabrication Facility (BFF) at the site. Steel blocks will be pre-outfitted, painted and finished at the facility before being transported as large sections to Cochin Shipyard's new dry dock, where they will be used to assemble and construct ships. The arrangement is expected to reduce vessel construction time by ensuring faster availability of ready-to-use steel blocks.
The state government will receive an annual lease amount of ₹1.45 crore, rising to around ₹1.70 crore including GST. The project is expected to create around 2,000 direct jobs, with additional indirect employment anticipated across the maritime supply chain.
Cochin Port Authority and Cochin Shipyard had earlier signed MoUs for a Ship Block Building Unit with a proposed investment of ₹3,800 crore and a Ship Repair Facility with an investment of ₹1,500 crore, as part of a broader development plan around the Cochin Port and shipyard region estimated at around ₹10,000 crore in combined investment. Cochin Shipyard, a Central public sector undertaking, has an existing capability to build vessels of up to 1,10,000 DWT and undertake ship repairs of vessels up to 1,25,000 DWT.