Tata Group, which makes everything from salt to smartphones and luxury cars, is now preparing to hoist its flag in the ocean. Kerala Chief Minister V.D. Satheesan has made this big disclosure in an interview given to Bloomberg. According to the Chief Minister, this leading business group of the country is going to make a huge investment of Rs 10,000 crore (about 1 billion dollars) in the field of shipbuilding in Kerala. The state government has received a proposal in this regard from Tata. If everything goes as per plan, this mega project can get the green signal within just a month.
Government will give land, deal finalized within a month
Chief Minister Satheesan has clarified that Tata Group is fully ready to invest money in this new and ambitious ship building project. The state government is also adopting a very positive attitude regarding this investment proposal. Necessary land will be provided by the government to establish this big project. The administration is currently studying every aspect of this proposal closely and it is expected that final approval will be given to it within the next 30 days. The field of shipbuilding will be a completely new and exciting business for the Tata Group, which does business from coffee to steel and software. However, according to Bloomberg’s report, at present no official statement has come from the Tata Group spokesperson on this investment.
Tata will create a stir in maritime business
This investment by Tata has come at a time when rival business group Adani Group has already taken a big leap in marine infrastructure. Adani Group is building a huge deepwater transshipment hub in Vizhinjam, Kerala. Recently, this port project has also received a commitment of 1.4 billion dollars from the giant ‘MSC Mediterranean Shipping Company’ (MSC). At present, the Satheesan government is also reviewing this big deal. Now, with the entry of Tata through shipbuilding in the same state, it is clear that in the coming times, the competition for dominance in the maritime business between the two largest corporate houses of the country may intensify.
India’s new flight for maritime supremacy
Tata’s possible entry into the shipbuilding sector is part of India’s larger strategy, under which the country wants to rapidly strengthen its position in global maritime trade. India is continuously emphasizing on increasing its ‘shipbuilding’ capacity. In this context, last April, India had signed an important agreement with South Korea to increase cooperation in this sector. Let us tell you that after China, South Korea is the second largest shipbuilding hub in the world. On the other hand, Kerala also wants to establish itself as a major maritime hub by creating a network of ship building and repair services around major ports like Kochi and Vizhinjam. However, the Chief Minister has not yet clarified what will be the capacity of this proposed plant of Tata and when will the production start here.
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