Thiruvananthapuram: The UDF government in Kerala has landed in controversy after the Tata Group dismissed Chief Minister V. D. Satheesan's claim about its plans to invest in a shipbuilding project in the state. Following the controversy, the Chief Minister's Office (CMO) on Friday issued a statement clarifying that Tata had not submitted any proposal for such a project.
The Kerala government said the Chief Minister's recent remarks regarding the Tata Group were made in the context of the state's long-term maritime development strategy under Mission Samudra and were not intended to suggest that a specific investment proposal had already been finalised with the company.
In a statement, the CMO said it had taken note of media reports regarding the proposed investment in the shipbuilding sector following the Chief Minister's recent interview with a television channel.
It said the Chief Minister's remarks reflected Kerala's strategic vision and investment roadmap to develop the state into a major shipbuilding and maritime manufacturing hub under Mission Samudra.
"The reference to an investment potential of around ₹10,000 crore pertains to the scale of investments that the government is working to attract into the sector over the coming years through multiple projects and investors. It was not intended to indicate that a single investment proposal of that value had already been concluded with any one company," the statement said.
The CMO said that, as part of this strategy, the government had already facilitated the establishment of a joint venture between Malabar Cements Ltd and Artson Engineering Ltd, a company within the Tata Projects ecosystem, to develop a shipbuilding facility at Cochin Port.
"All major institutional approvals have been completed, the required waterfront land has been made available through the Cochin Port Authority, and preliminary development activities have commenced. This project is envisaged as an important beginning in creating a modern shipbuilding ecosystem in Kerala," it said.
The statement added that Mission Samudra envisages much more than a single shipbuilding unit. According to the government, it is pursuing an integrated maritime development strategy covering shipbuilding, ship repair, offshore fabrication, marine engineering, coastal manufacturing, logistics, maritime services and ancillary industries by leveraging assets such as Vizhinjam International Seaport, Kochi Port and Cochin Shipyard.
The government said discussions were underway with several leading national and international investors and that announcements would be made once individual proposals reached the appropriate stage of finalisation.
"The Chief Minister's observations should therefore be viewed in the context of Kerala's broader maritime transformation programme under Mission Samudra, which aims to position the state as one of India's leading maritime economies while creating substantial employment and industrial growth," the statement said.
It added that the government remained committed to creating an investor-friendly policy environment and developing a globally competitive maritime manufacturing ecosystem to support Kerala's long-term economic growth.
Speaking at an event in Thiruvananthapuram on Wednesday, Satheesan had said that the Tata Group would establish its first shipbuilding venture in Kerala and that ship maintenance facilities would also be set up in the state.
"The Tata Group's shipbuilding units will come to Kerala. There will also be ship maintenance facilities," he had said.
The Chief Minister also said the government had held discussions with Indian Oil Corporation (IOC), HPCL and BPCL on providing bunkering facilities and was extending support to Cochin Port for establishing a cruise terminal.