The State government has decided to lease 18.16 acres at Ramanthuruth to Cochin Shipyard Limited (CSL) for a ship block building project, Chief Minister V.D. Satheesan said on Tuesday.

The Chief Minister said the shipyard has agreed to invest ₹5,000 crore in the project. It is expected to generate around 2,000 direct jobs and additional indirect employment, Mr. Satheesan said. He was speaking to reporters after a Cabinet meeting in Thiruvananthapuram on Tuesday.

The government will receive an annual lease amount of ₹1.45 crore from the land, located on an island close to the city. The annual revenue from the lease will be around ₹1.70 crore, including GST, he said.

The project is expected to give a boost to the State’s shipbuilding sector and attract further investment, he said. “The matter had been pending for long, and the government took a decision through talks in a speedy manner,” the Chief Minister said.