+
Oil PSUs Invest Rs 170 bn in Mega Shipping JV Led by SCI
PORTS & SHIPPING

Oil PSUs Invest Rs 170 bn in Mega Shipping JV Led by SCI

A consortium of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) is set to invest in a major shipping joint venture led by the Shipping Corporation of India (SCI). Under the proposed structure SCI will hold 50 per cent majority, the Maritime Development Fund (MDF) will hold 15 per cent and the three oil PSUs will hold a combined 35 per cent stake.

The move is aimed at reducing reliance on foreign-flagged shipping, as nearly 90 per cent of India’s crude imports currently travel on non-Indian vessels. Analysts cited in the release calculated that India spends about $75 billion, roughly Rs 6.2 tn, annually on freight to foreign companies, exposing the energy chain to geopolitical disruptions and soaring insurance premiums during crises. Bringing shipping into a domestic, captive model is intended to retain freight outgo within the national economy and improve supply security.

The joint venture envisages the acquisition or construction of 59 new vessels by 2030 with planned capital deployment of about Rs 150 bn to Rs 170 bn. The fleet will include Very Large Crude Carriers, designated VLCCs, Very Large Gas Carriers, designated VLGCs, product tankers for refined fuels and offshore support vessels to assist exploration and production companies. A significant share of construction is expected to be sourced from Indian shipyards in line with the Atmanirbhar Bharat objective.

Officials described the initiative as a catalyst for reviving domestic shipbuilding, generating thousands of skilled maritime jobs and standardising designs for both commercial and naval requirements. The venture will also need rapid fleet modernisation and a commercial mindset to compete with global operators, while low-cost funding from the MDF will be a key determinant of pace. Sponsors expect the business to reach profitability within three years of full operations, transforming SCI into a strategic logistics asset and improving margins for the oil PSUs.

A consortium of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) is set to invest in a major shipping joint venture led by the Shipping Corporation of India (SCI). Under the proposed structure SCI will hold 50 per cent majority, the Maritime Development Fund (MDF) will hold 15 per cent and the three oil PSUs will hold a combined 35 per cent stake. The move is aimed at reducing reliance on foreign-flagged shipping, as nearly 90 per cent of India’s crude imports currently travel on non-Indian vessels. Analysts cited in the release calculated that India spends about $75 billion, roughly Rs 6.2 tn, annually on freight to foreign companies, exposing the energy chain to geopolitical disruptions and soaring insurance premiums during crises. Bringing shipping into a domestic, captive model is intended to retain freight outgo within the national economy and improve supply security. The joint venture envisages the acquisition or construction of 59 new vessels by 2030 with planned capital deployment of about Rs 150 bn to Rs 170 bn. The fleet will include Very Large Crude Carriers, designated VLCCs, Very Large Gas Carriers, designated VLGCs, product tankers for refined fuels and offshore support vessels to assist exploration and production companies. A significant share of construction is expected to be sourced from Indian shipyards in line with the Atmanirbhar Bharat objective. Officials described the initiative as a catalyst for reviving domestic shipbuilding, generating thousands of skilled maritime jobs and standardising designs for both commercial and naval requirements. The venture will also need rapid fleet modernisation and a commercial mindset to compete with global operators, while low-cost funding from the MDF will be a key determinant of pace. Sponsors expect the business to reach profitability within three years of full operations, transforming SCI into a strategic logistics asset and improving margins for the oil PSUs.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code