Thoothukudi’s 11 Projects Worth ₹1 Lakh Crore+ in Shipbuilding, EVs, Data Centre & More - Will Property Prices Be Impacted?
Thoothukudi is preparing for a major transformation of its industry because of the huge investments in the ports, shipbuilding, EV, electronics, power and space technology sectors. All of these projects can change the economic and employment landscape of the city in the next ten years.
₹38,000 crore HD Hyundai shipyard
HD Hyundai is planning a greenfield shipyard project of around 2.5 million gross tonnes per year in Thoothukudi which will cost an estimated ₹38,000 crore. The project will generate almost 15,000 direct employment opportunities, and is designed as part of a larger shipbuilding hub near VOC Port. It might also stimulate demand for marine equipment, engineering, steel, logistics and other ancillary businesses in the region.
₹17,167 Crore Outer Harbour Project
The Outer Harbour Project of the VOC Port will enhance the container handling capacity and maritime infrastructure in Thoothukudi with a budget of ₹17,167 crore. The project includes two container terminals, each with a quarry length of 1,000 providing a combined handling capacity of 4 to 5.2 million TEUs. The port's draft will also rise from 16 metres to 18 metres, to accommodate ships that can carry up to 24,000 TEUs. Financed through a combination of Hybrid Annuity (₹11,733 crore for core infrastructure) and DBFOT models (₹5,434 crore for terminal expansion).
₹20,800 Crore SuperCritical Power Project
Thoothukudi is also set to get a ₹20,800-crore, 1,600-MW supercritical thermal power project, comprising two 800-MW units. The project is planned as a replacement of the existing 210-MW units at Thoothukudi Thermal Power Station and is expected to bring about a net addition of around 550 MW to the power system of Tamil Nadu. The investment is targeting industrial growth in the region, particularly in the manufacturing industry, EVs, electronics and port-related sectors, to boost the power infrastructure.
₹7,000 Crore VinFast Expansion
Vietnam's EV manufacturing company VinFast is set to expand its plant in Thoothukudi by investing ₹7,000 crore. The expansion will include the production lines for electric scooters and electric buses in addition to its existing electric car production lines. The company has ambitions to expand its capacity to manufacture up to 2 lakh electric cars, 10 lakh electric scooters and 2,000 electric buses per year.
₹986 Crore ISRO Spaceport
ISRO's second spaceport at Kulasekarapattinam is being built over an estimated area of 2,233 acres and cost ₹986 crore. It is mainly intended for Small Satellite Launch Vehicles (SSLVs) and launches by private space companies. The complex will feature launch pads, vehicle integration facilities, range and tracking systems and other support facilities.
TIDCO Propellant Space Park
A 2,000-acre zone located at least 25 km away from the launchpad (in Allikulam) to safely handle energetic materials and volatile rocket fuel production. The park is expectedly gather propellant production units, rocket component manufacturers, testing centers and space-tech industries to pave the way for private entities and suppliers.
₹10,000 Crore Lighthouse Data Centre
Lighthouse Green Data Centre has pledged ₹10,000 crore to build a data centre that uses Artificial Intelligence (AI) for hyperscale operations in Thoothukudi, which will generate approximately 400 positions. The plant will provide extensive digital infrastructure in the southern part of Tamil Nadu and also introduce a new technology-based industry to Thoothukudi.
₹8,000 Crore Electronics Investments
Yeemak and Kaynes Circuits are considering opening up facilities in Thoothukudi. Kaynes has planned an electronics manufacturing unit worth ₹4,995 crore, among other investments, which will help build the local supply chain and Yeemak committed an investment of ₹3,500 crore. The projects may involve printed circuit boards and electronic components and related products manufacturing, generating skilled jobs and industries.
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₹5,000 Crore RGE man-made Fibre Plant
RGE is set to add a big manufacturing unit to the industrial fabric of Thoothukudi with a ₹5,000-crore investment in the man-made fibre manufacturing plant. Overall, the project will help to enhance the textile and technical-fibre ecosystem in Tamilnadu along with generating demand for raw material, logistics, processing, other ancillary industries etc.
₹1,156 Crore Reliance FMCG Facility
Reliance Consumer Products plans to establish a manufacturing plant for FMCG products with an investment of more than ₹1,156 crore in the Allikulam Industrial Park of SIPCOT in Thoothukudi. The complex will occupy an area of approximately 60 acres and produce biscuits, snacks, spices and wheat flour. It will generate approximately 2,000 jobs for the next five years and bolster the capacity and capability of Thoothukudi as a hub for manufacturing and distribution of goods in southern India.
New SIPCOT Industrial Parks
The Tamil Nadu government has spotted a number of large tracts of land for new industrial parks in Thoothukudi. These major ones are 2,570 acres in Mudivaithanendal, 1,294 acres in Sillanatham Phase-II and 1,059 acres in Umarikottai . The Mudivaithanendal park has been proposed to be used for clean and renewable energy industries with a project cost of ₹1390 crore and an estimated investment of ₹5,000 crore. Sillanatham Phase-II is proposed as a dedicated EV manufacturing Park covering an area of 1294 acres with an investment of ₹774 crore to be developed and possible investment of ₹7000 crore.
Infrastructure and Real Estate impact
The industrial development will certainly drive up demand for industrial land, warehouses, worker housing and commercial spaces around Thoothukudi. The 2,233-acre ISRO spaceport, the 2,570-acre Mudaivaithanendal industrial park and the 1,294-acre Sillanatham EV park are among the thousands of acres of new industrial activity. Similarly, rental housing, hotels, retail, and transport services around these jobs may grow as factories, ports and logistics facilities grow larger.
Conclusion
Thoothukudi is developing an industrial ecosystem with significant projects in ports, shipbuilding, EVs, electronics and space. These investments, if they move forward on schedule, could result in the city experiencing a large number of jobs, manufacturing, logistics and supporting infrastructure increases over the next decade.