The Tata Group has applied for approval to invest 100 billion rupees (around $1 billion) in a shipbuilding venture in Kerala, state's chief minister said in an interview to Bloomberg.
Kerala Chief Minister V.D. Satheesan said in an interview at Thiruvananthapuram that the conglomerate is prepared to invest in shipbuilding and that the state government would provide the necessary land, according to the report. Satheesan added that the state administration is favourably considering the proposal and expects to approve it within a month, Bloomberg said.
The move would mark a new business line for Tata, whose interests already span coffee, luxury automobiles, steel and smartphones, per the report. A Tata Group spokesperson did not immediately respond to a request for comment, Bloomberg noted.
The development comes even as rival conglomerate Adani Group's deepwater transshipment hub at Vizhinjam has secured a $1.4 billion commitment from MSC Mediterranean Shipping Co, a deal that is currently under review by the Satheesan government, Bloomberg reported.
Tata's potential entry into shipbuilding comes at a time when India is looking to rapidly ramp up its shipbuilding capacity and strengthen its position in global maritime trade. In April, India and South Korea, home to the world's second-largest shipbuilding industry after China had agreed to deepen cooperation in the sector.
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Kerala, for its part, is looking to expand its footprint across the maritime value chain, including shipbuilding and repair services, near key ports such as Vizhinjam and Kochi, the report added.
The chief minister did not specify details regarding the proposed capacity or a production timeline, Bloomberg said.
With inputs from Bloomberg
