Indian media reports indicate that Shipping Corporation of India (SCI) is planning India’s largest shipbuilding project to date, involving eight 88,000 m³ Very Large Gas Carriers (VLGCs) with a total cost of approximately $950 million. Based on this figure, each vessel is estimated to cost around $190 million.
To advance the shipbuilding project, SCI is forming a joint venture with partners including Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Oil and Natural Gas Corporation of India (ONGC), and is launching a tender on behalf of the proposed joint venture to solicit bids from shipyards worldwide (including Indian and international shipyards) for eight 88,000 m³ VLGCs that are currently in the planning stage.
According to the tender documents, two VLGCs will be built by an international shipyard that has delivered at least three VLGCs in the past five years; the remaining six VLGCs must be built by the same international shipyard in a local Indian shipyard through technical cooperation, collaboration, joint venture, or strategic alliance. After the tender process is completed, the winning bidder will sign a shipbuilding contract with the SCI or its joint venture.
The report indicates that another major objective of this tender by the SCI is to identify shipyards in India possessing the necessary infrastructure, technology, and capabilities for VLGC construction. Additionally, due to a relevant directive issued by India’s Ministry of Finance expenditure department in July 2020, Chinese shipyards are prohibited from participating in this tender. Chinese shipyards may only bid if they have obtained registration and certification from the relevant Indian authorities.
SCI executives previously revealed that the joint venture plans to invest up to 150 billion rupees over the next five years to acquire approximately 59 vessels, including Very Large Crude Carriers (VLCCs), Very Large Crude Carriers (VLGCs), Suezmax and Aframax tankers, medium-range tankers, and offshore vessels, through secondhand acquisitions and new ship orders from Indian shipyards. The joint venture will be responsible for procuring, owning, operating, and managing all types of vessels for the import and export of crude oil, petroleum products, and other hydrocarbon cargoes, as well as coastal transportation.
The eight VLGCs being tendered are part of a 59-vessel project, with IOC, BPCL, and HPCL requiring four, two, and two vessels respectively.
Notably, in addition to the above eight gas carriers, in September 2025, it was reported that the IOC would place an order with a joint venture shipyard led by SCI for at least 10 Aframax tankers with a deadweight tonnage of 80,000 to 120,000 tons.
The IOC initially considered placing orders for this batch of oil tankers with Chinese shipyards, but later transferred the shipbuilding project back to Indian domestic shipyards due to various factors. However, rumors about this order have circulated for months, yet no Indian shipyard has announced any orders for this batch of oil tankers to date.