Industry sources said that Shipping Corporation of India (SCI) is embarking on a large-scale new shipbuilding project and plans to place orders for 26 new ships with domestic shipyards. This move is in line with the Indian government’s wider strategy to expand the size of the national fleet and shipbuilding capacity.
Sources familiar with the new shipbuilding project revealed that the total value of the order is approximately 198.2 billion rupees (approximately US$2.3 billion) and will be delivered in phases over several years.
If the order is finalized, SCI’s fleet size will be significantly enhanced, with an additional 1.18 million deadweight tons of shipping capacity. Currently, SCI has a fleet of 55 ships, including oil tankers, bulk carriers, container ships and offshore workboats.
The move is part of a broader procurement plan for India’s state-owned energy, fertilizer and steel industries, which expects government-backed companies to order more than 200 ships worth nearly 1.5 trillion rupees (about US$17.105 billion). The plan is in line with India’s goal of reducing its reliance on foreign-built ships.
Earlier this year, Indian Prime Minister Narendra Modi unveiled a multi-billion dollar initiative for the shipbuilding sector. India currently aims to have 7% of its fleet of domestically built tankers by 2030, with a long-term goal of increasing that proportion to nearly 70% by 2047, the deadline India has set for achieving developed country status.
India’s move is aimed at stimulating domestic demand for ships, boosting India’s still-nascent shipbuilding industry and attracting investment from global shipbuilders, including those in Japan and South Korea.
It is worth noting that SCI’s expected order will be one of the largest single orders from an Indian operator in recent years, marking a shift in the shipowner’s shipbuilding strategy towards Indian shipyards. The details of the ships have not yet been officially disclosed, but it is expected that the new ships will support the transportation of crude oil, refined oil, and dry cargo.
The SCI fleet expansion is being pursued in parallel with other initiatives led by the Indian government, including the planned launch of a national container line, the Bharat Container Line, which will be developed as a public-private partnership. Indian officials said the new line plans to have a fleet of up to 100 ships, including time-chartered ships, but have not yet confirmed a specific timetable.
In addition, India has signed a series of maritime cooperation agreements with several global shipping companies, including Mediterranean Shipping Company, Maersk, and CMA CGM, to strengthen port and logistics infrastructure and seek to play a greater role in global trade flows.