Engineering firm Larsen & Toubro (L&T) will be the first company to set up a major state-of-the-art ship building yard at a cost of Rs 1,500 crore.

"We will announce the details of the project in one or two months,'' a top company official told PTI, adding that the company has identified three locations in Tamil Nadu, Andhra Pradesh and Gujarat, of which one would be selected.

L&T is already into shipbuilding at Hazira, Gujarat, but the area there is not adequate for expansion and for making large ships.

The new greenfield Rs 1,500-crore ship building yard would come up on a 1,000-acre area and have capability to make all types of ships, including high tech such as CNG, LNG carriers and containers up to 3 lakh dead weight tonnes (DWT), L&T Senior Vice-Pr esident, Mr MV Kotwal said.

Though India has 28 ship building yards, the largest ship built in the country are 45,000 DWT in Kochi Shipyard and none of them have the capability to manufacture high tech or sophisticated ships.

The L&T shipyard would have the capability of manufacturing any type of ship, including Frigates and Destroyers for Navy and Coast Guard.