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Larsen & Toubro has proposed an expansion of approximately INR 1,100 crore at its Kattupalli shipyard near Chennai, adding new fabrication units, assembly shops, paint and blasting bays, warehousing, office and residential buildings, and a skill development centre. The project, to be developed on the company's existing 892.11-acre site, aims to help the yard reach the ship-building, repair and modular fabrication capacity permitted under earlier environmental clearances. Work is expected to begin in October 2025 and be completed over three years.
Larsen & Toubro (L&T) has proposed an expansion worth approximately INR 1,100 crore at its Kattupalli shipyard, located around 40 kilometres north of Chennai in Tamil Nadu, to add new fabrication and assembly shops along with supporting infrastructure. The move is aimed at helping the greenfield facility operate at the full capacity permitted under environmental approvals granted more than a decade ago.
The Kattupalli yard received Environment Clearance and Coastal Regulation Zone clearance in 2009, permitting an annual modular fabrication capacity of 50,000 tonnes, along with permission to construct 25 ships and repair 60 vessels each year. However, the shipyard's existing infrastructure has not kept pace with these approved levels, with the facility currently constructing around 15 new ships and repairing about 30 vessels annually, according to documents on the proposed expansion.
To close this gap, L&T intends to undertake further development works within its existing 892.11-acre site at Kattupalli. The proposed infrastructure includes additional fabrication units, paint shops, assembly shops and blasting bays, along with warehouse sheds, office buildings, residential accommodation, a skill development centre, and landscaping and greenbelt development. The company has stated that these additions would allow the yard to reach its intended production capacity as originally permitted under the 2009 clearances, rather than expanding beyond what was previously approved.
Development work on the expansion is scheduled to commence in October 2025 and is expected to be completed within three years. The Kattupalli facility functions as a dedicated design and construction centre for warships and is equipped with multiple dry and wet berths, allowing concurrent construction and repair of vessels as well as modular ship-building. The yard has also been recognised for its safety standards, having become the first Indian shipyard to receive a five-star rating from the British Safety Council's Occupational Health and Safety Audit in 2019.
The proposed expansion comes against the backdrop of L&T's broader financial momentum, with the company recording fresh orders and a consolidated order book that has grown on a year-on-year basis, reflecting sustained demand across its infrastructure, defence and shipbuilding businesses. Strengthening capacity at Kattupalli is expected to support the company's positioning in both domestic and export-oriented shipbuilding, including defence platforms such as offshore patrol vessels, submarines and auxiliary naval vessels, alongside commercial shipbuilding and repair work.
L&T has not issued detailed public comment beyond the documentation associated with the proposed expansion. The Kattupalli site, developed originally as part of L&T's entry into shipbuilding in 2007, has over the years handled a range of naval and commercial projects, including the construction of offshore patrol vessels for the Indian Coast Guard, interceptor boats, and support vessels for the Indian Navy, alongside repair and refit work for foreign naval vessels.
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