Larsen & Toubro Ltd. (L&T) is currently handling 30 ship repairs and the construction of 15 new ships annually at its Katupalli shipyard, located about 40 km north of Chennai. Despite its large infrastructure, the facility has not yet reached its approved production and repair capacities.
Expansion Aimed at Unlocking Full Potential
The company has announced plans to invest ₹1,000 crore to upgrade the Katupalli shipbuilding complex. The goal is to reach the intended annual production capacity of 50,000 tonnes at its modular fabrication facility (MFF), and to enable the construction of 25 ships and repair of 60 ships per year, as originally approved.
Clearances and Existing Approvals
The Katupalli facility received Environmental Clearance and Coastal Regulation Zone clearance in 2009, allowing the modular facility to produce 50,000 tonnes per year. The same clearance permitted 25 ship constructions and 60 repairs annually. However, the current infrastructure has fallen short of achieving these limits.
Scope of Proposed Development
According to documents reviewed by BusinessLine, the expansion will occur within the existing 892.11-acre land parcel owned by L&T. New facilities will include fabrication units, paint and assembly shops, blasting shops, as well as residential and office buildings, warehouse sheds, a skill development centre, and greenbelt landscaping.
Timeline for Development
The company aims to begin development works by October, with a target completion timeline of three years. These efforts are expected to significantly boost shipbuilding and repair capabilities.
Strategic Importance of Katupalli Facility
L&T’s Katupalli yard is a greenfield shipyard with a dedicated design centre for warships. Equipped with multiple dry and wet berths, the facility allows simultaneous construction and repair of multiple vessels. These features support its strategic role in India’s defence and commercial shipbuilding sectors.
No Comments from L&T
While the investment plan has been detailed in official documents, L&T officials declined to comment on the project.
