Kerala leases 18.16 acres at Ramanthuruth to Cochin Shipyard for ₹5,000-cr project

The Kerala government has decided to lease 18.16 acres of land at Ramanthuruth, an island near Kochi, to Cochin Shipyard Limited (CSL) for a ship block building project. The decision was announced by Chief Minister V.D. Satheesan on Tuesday after a Cabinet meeting in Thiruvananthapuram.

The Chief Minister said the shipyard has agreed to invest ₹5,000 crore in the project. It is expected to generate around 2,000 direct jobs and additional indirect employment, he added. The lease will bring the State government an annual amount of ₹1.45 crore. Including GST, the total annual revenue from the lease is estimated at ₹1.70 crore.

Ramanthuruth is strategically located close to the Kochi port and existing shipbuilding infrastructure. The project is expected to give a significant boost to Kerala’s shipbuilding sector and attract further investment in the maritime industry. Mr. Satheesan noted that the matter had been pending for a long time and that the government resolved it through speedy discussions.

Cochin Shipyard Limited is a premier shipbuilding and ship repair company in India, with facilities that have handled some of the largest vessels in the region. The proposed ship block building project involves the construction of large prefabricated sections or blocks of a ship, which are then assembled at the main shipyard. This approach improves efficiency and reduces the overall construction time.

The decision is part of the State’s broader efforts to leverage its coastal geography and develop a robust maritime economy. The lease agreement is expected to facilitate technology transfer, skill development, and ancillary industrial growth in the region. Local residents and businesses are likely to benefit from increased economic activity, though the government has not yet detailed specific provisions for local employment or infrastructure development.

The project also aligns with the Union government’s focus on expanding India’s shipbuilding capacity under initiatives such as the Sagarmala programme. Kerala has traditionally had a limited presence in large-scale ship manufacturing, and this investment by CSL could position the state as a key player in the sector.

Officials said the lease terms were finalized after consultations between the State government and CSL. The revenue from the lease will be a recurring source of income for the government, while the project itself is expected to have long-term multiplier effects on the local economy.

Chief Minister Satheesan said the decision reflects the government’s commitment to fast-tracking investment proposals and creating employment opportunities for the youth. „The matter had been pending for long, and the government took a decision through talks in a speedy manner,“ he said.

The announcement has been welcomed by industry bodies and trade unions, though some have sought clarity on environmental clearances and the impact on the island’s fragile ecosystem. The government has assured that all necessary approvals will be obtained before work begins.

This development marks a significant step in Kerala’s industrial journey, with the shipbuilding sector poised to become a major contributor to the state’s economy. Further details on the project timeline and execution plan are expected in the coming months.