State-owned Garden Reach Shipbuilders & Engineers Ltd has emerged as the lowest bidder in a landmark commercial shipbuilding tender floated by Oil and Natural Gas Corporation Ltd, ET Infra reported.

The tender, which is the first to be finalised after the Union Cabinet approved a ₹69,725 crore package to promote domestic shipbuilding, involves the construction of four Platform Supply Vessels. GRSE quoted a price of ₹258 crore per vessel, making the total contract value ₹1,032 crore.

The competition for the contract was intense, with other contenders including Cochin Shipyard Ltd, Hindustan Shipyard Ltd, L&T Shipbuilding, and Titagarh Naval Systems Ltd. GRSE’s successful bid underscores its growing presence in the commercial shipbuilding sector, complementing its established reputation in defence shipbuilding.

The company, a Navratna PSU under the Ministry of Defence, has steadily expanded its portfolio to include both naval and commercial vessels.

Platform Supply Vessels are critical assets for offshore oil and gas exploration and production. They provide logistical support, transport essential supplies, and assist in operations around offshore platforms. Their role is indispensable in ensuring the smooth functioning of offshore energy infrastructure, making this contract strategically significant for ONGC’s operations.

The winning shipyard will also benefit from government financial assistance in the range of 15–20 per cent. This support is part of the broader revitalisation program aimed at strengthening India’s shipbuilding industry, reducing reliance on foreign yards, and promoting self-reliance under the Aatmanirbhar Bharat initiative. The financial aid will enhance the viability of the project and encourage further participation in commercial shipbuilding tenders.

GRSE’s success in this tender highlights its ability to compete effectively against both state-owned and private shipyards. It also reflects the government’s commitment to fostering indigenous shipbuilding capabilities. The contract is expected to boost GRSE’s revenues and reinforce its position as a versatile shipbuilder capable of delivering complex vessels for both defence and commercial sectors.

The deal marks a significant milestone in India’s maritime industrial base, signalling the beginning of a new phase where defence shipyards are increasingly participating in commercial projects. With the government’s package providing a strong incentive framework, more such contracts are likely to follow, further energising the domestic shipbuilding ecosystem.

Agencies