Cochin Shipyard Ltd, Swan Defence and Heavy Industries (SDHI), and L&T Shipbuilding Ltd have submitted responses to an expression of interest (EOI) issued by Shipping Corporation of India (SCI) for its planned joint venture with state-run oil companies to build eight very large gas carriers (VLGCs) of 88,000 cubic metres each, six of them in India, in a $1 billion project. Cochin Shipyard has partnered with South Korea’s HD Korea Shipbuilding & Offshore Engineering, SDHI with Samsung Heavy Industries, and L&T Shipbuilding with Hanwha Ocean to participate in the EOI.
The plan calls for two VLGCs to be built at an international shipyard with prior experience in VLGC construction, while the remaining six will be constructed in India through a technical tie-up, joint venture, or strategic alliance with the same global yard. Indian shipyards have never built VLGCs before, making this the largest new shipbuilding initiative by a domestic company. The EOI aims to assess the capabilities of both Indian and international shipyards for the project. SCI may either invite bids from these applicants or issue a global tender for the vessels.
The joint venture, to be led by SCI with a 50% stake, will include Indian Oil Corporation, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, ONGC, and Sagarmala Finance Corporation as partners. The JV plans to acquire up to 59 vessels—including VLGCs, very large crude carriers, Suezmax and Aframax tankers, medium-range tankers, and offshore vessels—through a mix of new builds in India and second-hand purchases, with a projected investment of ₹15,000 crore over five years. Of the eight VLGCs, Indian Oil will require four, and BPCL and HPCL two each.
This project aligns with India’s goal to enter the global top ten in shipbuilding by 2030 and the top five by 2047. In September 2025, the Union Cabinet approved a ₹69,725 crore package to promote local shipbuilding, including the ₹24,736 crore Shipbuilding Financial Assistance Scheme to provide financial support and incentives for ship recycling, and the ₹25,000 crore Maritime Development Fund to attract private investment through equity and debt funding. Additionally, the ₹19,989 crore Shipbuilding Development Scheme aims to expand greenfield and brownfield shipyard capacity, boost domestic skills, R&D, ship design, and common infrastructure, supporting the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 targets.
