A ₹34,000-crore mega greenfield shipyard project proposed by South Korea-based leading shipbuilding company HD Hyundai was recently widely reported in Telugu Desam (TDP)-friendly media as being shifted to Andhra Pradesh.
The project, originally proposed to be established in Thoothukudi, Tamil Nadu, was reportedly being brought to the Kakinada SEZ following the initiative of Andhra Pradesh Minister Nara Lokesh. However, recent developments indicate that these claims may not reflect the actual ground situation.
HD Hyundai Team Visits Thoothukudi
A high-level delegation from HD Hyundai visited Tamil Nadu from September 1 to 10 and inspected the proposed project site at Thoothukudi.
The Korean delegation, led by Sanjeon Hong, met Tamil Nadu’s Industries Minister and senior officials and discussed the progress of the proposed shipyard project.
The latest developments indicate that the process to establish the shipyard at Thoothukudi is continuing.
Key Technical Processes Underway
Several important technical processes related to the project have already moved forward.
The VOC Port Authority has issued a work order for the preparation of a Detailed Feasibility Report (DFR). An RFP (Request for Proposal) has also been invited for selecting international consultants to prepare the Detailed Project Report (DPR).
Meanwhile, the Tamil Nadu government has issued orders transferring around 1,700 acres of land to SIPCOT during the first phase of the project.
These developments suggest that the proposed shipyard project continues to progress in Tamil Nadu.
Korean Delegation Meets Central Officials
The Korean delegation also reportedly met officials of the Union Ministry of Ports, Shipping and Waterways in Delhi to discuss the policy support required for the project.
According to the MoU signed on April 20, 2026, between the Tamil Nadu government, the Union Ports Ministry and HD Hyundai, steps are continuing to establish a shipbuilding facility at Thoothukudi with a capacity of 2.5 million gross tonnes.
What Happened During Nara Lokesh’s South Korea Visit?
During his visit to South Korea in July 2026, Andhra Pradesh Minister Nara Lokesh reportedly met the management of HD Hyundai.
TDP-friendly media reported that Lokesh explained the facilities available at the Kakinada Gateway Port and the Andhra Pradesh government’s “Speed of Doing Business” approach to the company’s management.
Based on this meeting, reports subsequently claimed that HD Hyundai would cancel its Thoothukudi agreement and shift the project to the Kakinada SEZ.
However, the subsequent visit by HD Hyundai representatives to Thoothukudi and their continued efforts to take the project forward there have raised questions over those claims.
There is now growing discussion that the earlier TDP-friendly media campaign about the project being shifted to Andhra Pradesh may not have been based on the actual status of the project.
Other Major Investment Claims Under Scrutiny
The HD Hyundai issue has also renewed the debate over the difference between the Andhra Pradesh government’s claims of attracting major investments and developments taking place on the ground.
For instance, Websol, which was expected to establish an 8-GW solar manufacturing project with an investment of around ₹3,538 crore at Naidupeta in Tirupati district, has reportedly announced plans to move the project to West Bengal.
The company reportedly cited factors such as lower land costs and a more favourable industrial environment as reasons for its decision.
Tata Power Chooses Odisha
Similarly, Tata Power has decided to establish a 10-GW manufacturing plant, involving an investment of around ₹6,675 crore, at Gopalpur in Odisha instead of Andhra Pradesh.
There has also been discussion that Hindustan Coca-Cola Beverages has withdrawn its proposed ₹1,200-crore plant in Anakapalli and shifted the project to Telangana.
Similarly, reports have emerged that Azad India Mobility cancelled its proposed ₹1,046-crore project, while Jupiter Renewable Energy reportedly withdrew an investment proposal worth around ₹2,700 crore.
Andhra Pradesh’s Investment Friendliness Ranking
Another issue being discussed among industrial circles is Andhra Pradesh’s reported fall to 8th position in the Investment Friendliness Index attributed to NITI Aayog.
This has further fuelled questions over the gap between investment announcements made by the government, media reports highlighting major projects coming to the state, and the actual industrial projects that are progressing on the ground.
Growing Questions Over Investment Narrative
Against this backdrop, the HD Hyundai developments have once again brought the state’s investment narrative under scrutiny.
While the government and its supporters have been highlighting major investments coming to Andhra Pradesh, developments surrounding projects such as HD Hyundai, Websol and Tata Power have triggered questions about how many of the announced investments are actually translating into projects on the ground.
The apparent mismatch between investment claims, media publicity and the actual progress of industrial projects has therefore become a subject of growing interest and debate in Andhra Pradesh.
