New Delhi: The Government of Kerala will lease 18.16 acres of land to Cochin Shipyard Limited (CSL) in Kochi for a ship block building project involving an investment of around Rs 5,000 crore, Chief Minister V D Satheesan said on Tuesday.

The project is expected to create around 2,000 direct jobs, besides generating more employment opportunities indirectly, Satheesan said while speaking to reporters after a Cabinet meeting.

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The land, located on an island close to Kochi city, will be leased for the project involving Cochin Shipyard, he said.

The government will receive an annual lease amount of Rs 1.45 crore. Including GST, the annual revenue from the lease will be around Rs 1.70 crore, Satheesan said.

The proposal had been pending for some time and was cleared after discussions with Cochin Shipyard, he said.

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Describing the decision as an important one, Satheesan said the Rs 5,000-crore investment would bring large-scale employment and could also support further development opportunities in Kochi.

The project is expected to give a boost to the state's shipbuilding sector and attract further investment, he said.

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