Cochin Shipyard Ltd, Swan Defence and Heavy Industries Ltd (SDHI) and L&T Shipbuilding Ltd have submitted expressions of interest to build eight very large gas carriers (VLGCs) in a $1 billion project initiated by Shipping Corporation of India (SCI), reported ET Infra.

The plan involves constructing two VLGCs at an experienced international shipyard and six in India through technical tie-ups, joint ventures or strategic alliances. This marks a significant milestone as Indian shipyards have never built VLGCs before, making it the largest new shipbuilding initiative by an Indian company.

Cochin Shipyard has partnered with HD Korea Shipbuilding & Offshore Engineering, the world’s leading shipbuilder, while SDHI has tied up with Samsung Heavy Industries, another major South Korean player.

L&T Shipbuilding has submitted its proposal in collaboration with Hanwha Ocean Co Ltd. The EoI process, which closed last week, will allow SCI to either invite bids from these applicants or float a global tender to procure the tankers.

The joint venture, led by SCI with a 50 per cent stake, will include Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Oil and Natural Gas Corporation, and Sagarmala Finance Corporation.

Together, they plan to acquire 59 ships over five years, including VLGCs, very large crude carriers, Suezmax and Aframax tankers, medium-range tankers, and offshore vessels, with an investment of ₹15,000 crore. Of these, IOC requires four VLGCs, while BPCL and HPCL need two each.

This initiative aligns with India’s ambition to become one of the world’s top ten shipbuilding nations by 2030 and top five by 2047. The Union Cabinet’s approval of a ₹69,725 crore package in September 2025 underlines this ambition.

The package includes the Shipbuilding Financial Assistance Scheme to offset cost disadvantages faced by Indian yards, a Maritime Development Fund to attract private investment through blended finance, and a Shipbuilding Development Scheme to expand capacity, skills, R&D, and ship design capabilities.

The VLGC project is therefore not just about meeting domestic energy transport needs but also about positioning India as a global shipbuilding hub. By leveraging partnerships with South Korea’s leading shipbuilders, Indian yards will gain access to advanced technology and expertise, accelerating their learning curve and enhancing competitiveness.

The outcome of this EoI will determine whether India takes a decisive step towards building complex, large-scale vessels domestically, a move that could reshape its maritime industry for decades to come.

ET Infra