Oil PSUs Back Mega Shipping JV With SCI
OIL & GAS

Oil PSUs Back Mega Shipping JV With SCI

The joint venture will be led by the Shipping Corporation of India (SCI) with a 50 per cent stake, while Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) will together hold a 35 per cent equity stake and the Maritime Development Fund (MDF) will hold the remaining 15 per cent under the Ministry of Ports, Shipping, and Waterways. The structure is intended to combine SCI's technical expertise, capital from the oil public sector undertakings and government policy support.

The three oil public sector undertakings plan an investment of Rs 150 bn to Rs 170 bn to set up an integrated logistics platform and to acquire or build fifty nine vessels by 2030. India imports the third-largest volume of crude oil and nearly 90 per cent of that cargo is carried on foreign-flagged vessels, producing an annual freight outgo estimated at Rs 6.2 tn. The JV aims to retain those payments within the domestic economy.

The fleet will include very large crude carriers capable of carrying two million barrels, very large gas carriers for liquefied petroleum gas, product tankers and offshore support vessels for deep-sea work by the Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL India). Many of the vessels are expected to be commissioned through Indian shipyards under the Atmanirbhar Bharat drive to revive shipbuilding, standardise designs and create skilled maritime jobs.

The JV is aligned with the Amrit Kaal Vision 2047 for the maritime sector and proponents say it could reduce exposure to global freight markets, producing potential annual savings of about Rs 745 bn to Rs 827 bn. The venture will need rapid fleet modernisation and more commercial procurement and operational practices to compete with global shipping majors, and the availability of low-cost financing from the Maritime Development Fund will influence how quickly the fleet can be scaled.

The joint venture will be led by the Shipping Corporation of India (SCI) with a 50 per cent stake, while Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) will together hold a 35 per cent equity stake and the Maritime Development Fund (MDF) will hold the remaining 15 per cent under the Ministry of Ports, Shipping, and Waterways. The structure is intended to combine SCI's technical expertise, capital from the oil public sector undertakings and government policy support. The three oil public sector undertakings plan an investment of Rs 150 bn to Rs 170 bn to set up an integrated logistics platform and to acquire or build fifty nine vessels by 2030. India imports the third-largest volume of crude oil and nearly 90 per cent of that cargo is carried on foreign-flagged vessels, producing an annual freight outgo estimated at Rs 6.2 tn. The JV aims to retain those payments within the domestic economy. The fleet will include very large crude carriers capable of carrying two million barrels, very large gas carriers for liquefied petroleum gas, product tankers and offshore support vessels for deep-sea work by the Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL India). Many of the vessels are expected to be commissioned through Indian shipyards under the Atmanirbhar Bharat drive to revive shipbuilding, standardise designs and create skilled maritime jobs. The JV is aligned with the Amrit Kaal Vision 2047 for the maritime sector and proponents say it could reduce exposure to global freight markets, producing potential annual savings of about Rs 745 bn to Rs 827 bn. The venture will need rapid fleet modernisation and more commercial procurement and operational practices to compete with global shipping majors, and the availability of low-cost financing from the Maritime Development Fund will influence how quickly the fleet can be scaled.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code