L&T plans a ₹1,000 crore investment to scale Katupalli shipyard to full shipbuilding and fabrication capacity.

Larsen & Toubro (L&T), the engineering and construction giant, is making a bold move to revive and scale up its shipbuilding ambitions at Katupalli, near Chennai, with a proposed investment of ₹1,000 crore. The company has set its sights on transforming the underutilised shipbuilding complex into a fully operational facility that can deliver on the capacity it was originally envisioned for.
The Katupalli shipyard was granted Environmental Clearance and Coastal Regulation Zone (CRZ) clearance back in 2009. These approvals allowed L&T to annually produce 50,000 tonnes under its Modular Fabrication Facility (MFF), build 25 new ships, and carry out repairs on another 60 vessels. However, despite these clearances, the facility has not been able to operate at the approved capacity due to limitations in the existing infrastructure.
Now, more than a decade later, L&T appears ready to change that. According to company documents cited by BusinessLine, L&T is planning a significant upgrade of the Katupalli yard to bridge the gap between approved capacity and actual output. The planned development works are aimed squarely at unlocking the full production potential of the complex.
The documents reveal that the expansion project is expected to commence in October this year and will take about three years to complete. Once in place, the upgraded infrastructure will enable the facility to finally meet its environmental clearance mandates, namely, the annual construction of 25 vessels, repair of 60 ships, and 50,000 tonnes of fabrication output under the MFF.
This fresh wave of investment comes at a time when India is pushing for self-reliance in maritime and defence infrastructure. L&T’s renewed commitment signals both confidence in the growth of the shipbuilding sector and a strategic intent to position Katupalli as a leading facility in India’s maritime ambitions.
The ₹1,000 crore infusion is not just about increasing capacity; it’s about putting Katupalli back on the map as a centre for large-scale, high-quality shipbuilding and repair work, aligning with the national push for enhancing indigenous capabilities.
With the new facilities on the horizon, Katupalli is poised for a significant transformation that could have ripple effects across India’s marine, defence, and industrial sectors.
Source: ET