SCI to acquire $2.3 bn worth in India-built vessels

State-owned Shipping Corporation of India (SCI) is planning to purchase 26 domestically built ships worth ₹198.2 billion ($2.3 billion) under a government push to boost the local shipbuilding industry, according to people familiar with the matter.

The new vessels, with a combined capacity of 1.18 million gross tonnes, will be delivered in phases over several years. The order is part of a wider procurement wave by Indian companies in sectors such as petroleum, natural gas, steel and fertilizers, collectively set to acquire 207 ships worth nearly ₹1.5 trillion.

The initiative aligns with an earlier plan to procure 112 crude carriers by 2040, as India — the world’s third-largest oil importer — seeks to expand its shipping tonnage. The acquisition will significantly expand SCI’s current fleet of 55 vessels, which includes tankers, bulk carriers, liners and offshore supply ships.

Indian government this year unveiled a ₹250 billion maritime fund aimed at reducing dependence on foreign-built vessels and strengthening domestic shipbuilding capacity. India plans to raise the share of locally built tankers from 5% today to 7% by 2030, with a long-term target of nearly 70% by 2047, the year it aims to achieve developed-nation status.

Officials say the strategy is designed to create captive demand for Indian shipyards, bolster a still-nascent industry and attract foreign investment from shipbuilding hubs such as Japan and South Korea.