New delhi: HD Hyundai Co., South Korea's leading shipbuilding conglomerate, announced that it has established a partnership with Indian government-backed entities to set up a joint shipyard in India. The company revealed that a memorandum of understanding (MOU) was signed with NSHIP TN and Sagarmala Finance Corporation Ltd. (SMFCL) of India in New Delhi on Monday, marking a significant step towards building a collaborative venture in the shipbuilding sector.

According to Yonhap News Agency, NSHIP TN (National Shipbuilding and Heavy Industries Park) Tamil Nadu is a special-purpose company established by India's port authorities, while SMFCL is instrumental in supporting India's Sagarmala port infrastructure development initiative. Under the terms of the MOU, HD Hyundai will spearhead the establishment of the joint venture shipbuilding company, assuming the role of the largest shareholder. The conglomerate is set to oversee overall operations and is committed to building a digital-focused shipyard in India.

The partnership was formalized during a bilateral summit between South Korean President Lee Jae Myung and Indian Prime Minister Narendra Modi, held in New Delhi on Monday. As part of its commitment to fostering local talent, HD Hyundai plans to establish a shipbuilding training center in India and facilitate the entry of South Korean equipment suppliers into the Indian market.

According to HD Hyundai, the Indian government intends to place initial shipbuilding orders with the company's South Korean shipyards before the joint shipyard begins its operations. Additionally, local workers will be dispatched to gain practical experience. An HD Hyundai official stated, "The latest deal marks the transition of bilateral shipbuilding cooperation into the business execution phase," emphasizing that the partnership is anticipated to secure new orders and create opportunities for Korean partners to expand their presence overseas.