Political row threatens ₹1,000-Crore Ponnani Shipyard project, casting shadow over landmark maritime investment

Malappuram: For a coastal town that had waited decades for a transformative maritime project, the proposed ₹1,000-crore mini shipyard at Ponnani represented the beginning of a new era of industrial growth. Expected to generate employment, attract investment and establish Ponnani as a major shipbuilding hub, the project had finally moved from the drawing board to implementation after years of uncertainty. But just as work gathered momentum following the signing of the agreement by the Kerala Maritime Board, the ambitious venture has become embroiled in a political controversy, with stiff opposition from local MLA KP Noushad Ali threatening to derail one of the biggest development projects ever proposed for the Malappuram coast.

The Kerala government signed the agreement for the mini shipyard in May 2026 with Hyderabad-based Travancore Precision Components Pvt Ltd. Shipbuilding operations will be carried out by its sister concern, Blue Gen Marine. According to the project schedule, the shipbuilding centre is expected to become operational by August, while the first vessel built in Ponnani is scheduled to be launched in December 2027. The project will be developed on 23 acres of government-owned land under a Public-Private Partnership (PPP) model, and company officials are planning to begin office operations as early as next month before commencing full-fledged construction.

However, days after the project entered the implementation stage, Ponnani MLA KP Noushad Ali publicly opposed the venture, alleging that it would affect the fish segregation centre functioning in the area and facilitate the handing over of prime government land to a private company. Raising his objections before Kerala Maritime Board CEO Jeromik George, the MLA claimed that many fishermen would lose their livelihood if the project proceeds. He alleged that attempts were being made to hand over valuable harbour land to private interests under the guise of shipbuilding and port development, warning that the people of Ponnani would not be misled by such claims.

The MLA further argued that there was no justification for allocating government land in Ponnani to a private company from Hyderabad for a vessel manufacturing unit. He alleged that the Left government was showing unusual haste in evicting existing occupants from the harbour to benefit private interests. He also claimed that a company with which an agreement had been finalised during the tenure of the Oommen Chandy government for port development had been sidelined to make way for the present proposal.

Port authorities have categorically rejected the MLA's allegations, describing them as baseless and without factual merit. Officials maintain that the fish segregation centre functioning on the proposed project site is itself an illegal occupation on government land earmarked for the shipyard. They said the Revenue Department would be approached to remove the encroachment and hand over the land for the project. Officials also pointed out that the project has already received all statutory approvals from the State Government and that the agreement was signed only after completing all procedural formalities.

Deputy Director of Ports, Ponnani, Ashwani Prathap, told Onmanorama that while the initial investment is estimated at around ₹1,000 crore, the total investment is expected to reach nearly ₹2,000 crore over the next eight years. He said the company selected through the tender process has extensive experience in shipbuilding and has already secured shipbuilding orders worth hundreds of crores. "It is unfortunate that opposition is being raised after the State Government has granted all approvals for the project," he said, reiterating that the fish segregation centre occupying the proposed site is illegal and has to be relocated.

The project revives hopes that had faded after the long-delayed Malabar Port proposal for the same stretch of land was eventually abandoned. For years, the government-owned waterfront remained without any major investment before the mini shipyard proposal finally brought renewed expectations of maritime industrial development in Ponnani.

It is learnt that the company has secured an international order worth around ₹200 crore from a Singapore-based company for the construction of two electric tugboats powered by 4,200-kilowatt battery systems, in Ponnani. Besides electric tugboats, the yard will manufacture offshore support vessels for marine infrastructure projects and technologically advanced fishing boats.

Under the concession agreement, the company will pay the Kerala Government ₹1.5 crore every year apart from an annual land lease rent of ₹25 lakh, which will increase by five per cent every year. The government will also receive a share of the company's total order value—0.5 per cent during the first two years, 0.75 per cent during the following two years and 1.5 per cent thereafter, pointed out the port official.

Former Ponnani MLA P Nandakumar criticised the opposition raised by the sitting MLA, alleging that vested political interests were behind the campaign against the project. "It was shocking to see an MLA opposing such a major investment in his own constituency. The allegation that the company intends to grab government land is childish because every PPP project is implemented on government land handed over to the concessionaire. His suggestion that the project should instead be implemented through the cooperative sector only shows a lack of understanding of how such projects function," Nandakumar said. He warned that continued political opposition could force the company to shift the investment to states such as Gujarat or Tamil Nadu, resulting in a major loss for Kerala.

Despite the controversy, company officials have made it clear that they intend to proceed with the project as planned. Construction of the office complex and supporting infrastructure is expected to begin shortly using advanced modular construction techniques designed for rapid execution. The first phase will build vessels measuring between 40 and 50 metres, while the second phase will manufacture ships up to 120 metres long. The third phase envisages an integrated ship repair complex, a marine genset manufacturing facility and a marine training institute.

According to the approved master plan, the shipyard will begin from the coastal end of the existing Junkar Road, where a gatehouse will provide access to the administrative block. The complex will include warehouses for construction materials, steel cutting and panel fabrication units, machine and pipe shops, and a slipway near the old Junkar Jetty to launch newly built vessels into the river. Open storage and fabrication facilities will also be developed in the first phase, while the principal shipbuilding infrastructure will come up near the existing breakwater beyond the old Junkar Jetty.