French shipping giant CMA CGM has signed a letter of intent with Cochin Shipyard Limited (CSL) India to build six LNG-powered feeder container ships, marking the first time a global liner operator has placed an order at an Indian yard.

The six 1700 twenty-foot equivalent unit (TEU) vessels have a total value of around $300 million. The Mumbai-listed shipbuilder said in a statement that formal shipbuilding contract, which will clarify technical and commercial terms, will be signed in the coming months.

CSL said: “This is a mega order from a leading customer.” Although ship brokers have linked the transaction to the world’s third-biggest container carrier, led by Rodolphe Saadé.

People close to deal said the design is expected to be based on an existing HD Hyundai Heavy Industries platform from South Korea’s Daewoo Shipbuilding & Marine Engineering and will follow an signed earlier this year between CSL and the South Korean shipbuilder.

The order represents a major breakthrough for India’s shipbuilding industry, which has long sought to win from leading international operators. weeks ago, India’s cabinet approved a multi-billion-dollar support plan aimed at expanding the country’s shipbuilding capacity and modernizing its domestic.

In May, CMA CGM first announced plans to order container ships in India as part of a broader regional growth strategy. CMA CGM, which has been in India for 34 years and employs around 17,000 people, has been expanding its footprint in the terminal and logistics spaces.

In the past months, CMA CGM has also re-flagged four container vessels under the Indian flag and is investing in port infrastructure at the Nhava Sheva Freeport Terminal (FT) near Mumbai and at the Port of Mundra.

It is another step towards the state-owned shipyard’s goal of becoming a global shipbuilding hub which was founded in 1972 and controlled by the Indian government. In 2023, the yard signed its first container shipbuilding contract with Samskip marking its entry into the liner market.

Cochin has also signed a memorandum of understanding with Maersk, the world’s second-biggest container shipping, to explore opportunities in ship repair and building. The first Maersk vessel is expected to come up for repair at Cochin in 2025.

These are in line with India’s maritime vision to become among the top 10 shipbuilding nations in the world by 2030 and in the top five by 247. Currently, India accounts for around 1% of the global shipbuilding market.