SCI working with oil & steel PSUs for long-term, Indian-flagged fleet augmentation: Sonowal

Vision to make India a design–build–finance–own–repair–recycling powerhouse

The Shipping Corporation of India’s (SCI) ongoing collaborations with oil and steel PSUs, under the guidance of the Ministries of Ports, Shipping & Waterways (MoPSW) and Petroleum & Natural Gas (MoPNG), are paving the way for a new era of Indian-owned and Indian-flagged vessels.

This was emphasised by the Union Minister of Ports, Shipping and Waterways (MoPSW), Mr Sarbananda Sonowal, after receiving the country’s third Very Large Gas Carrier (VLGC), Shivalik, at Visakhapatnam Port this week, under the Indian flag, described as a proud milestone in India’s maritime resurgence and energy security.

 

 

“SCI is currently working with oil PSUs to aggregate demand for 112 vessels and form a joint venture (JV) for long-term fleet augmentation. The initiative is expected to contribute to the nation’s efforts to save $75 billion (`6 trillion) in foreign exchange paid annually towards freight charges to foreign shipping lines,” confirmed Mr Sonowal. Similarly, SCI’s partnership with steel PSUs aims to strengthen the dry bulk segment, while its plan to establish the Bharat Container Shipping Line (BCSL) will boost India’s footprint in container shipping — enhancing EXIM efficiency and competitiveness.

“These initiatives not only reinforce India’s energy security and maritime capacity but also boost domestic shipbuilding, repair and ancillary industries,” he added. “They will create high-quality employment and position India as a maritime power with resilience, innovation and pride.”

Key policy measures

The Minister highlighted a series of transformative policy measures undertaken by the government to build a robust maritime ecosystem. He said that the `69,725 crore comprehensive package for the maritime and shipbuilding sectors will accelerate shipbuilding, modernisation and competitiveness. The government has also extended the Shipbuilding Financial Assistance Scheme (SBFAS) till 2036 with a corpus of `24,736 crore, ensuring sustained support for Indian shipyards.

In addition, a Maritime Development Fund (MDF) worth `25,000 crore — comprising a `20,000 crore investment fund and a `5,000 crore interest incentivisation fund — has been established to enable long-term financing and strengthen the industry’s global competitiveness. The Shipbuilding Development Scheme (SbDS), with an outlay of `19,989 crore, aims to expand India’s domestic shipbuilding capacity to 4.5 million gross tonnage annually, boosting employment and skill development.

Mr Sonowal said these measures, coupled with infrastructure status for large vessels, Customs duty exemptions for shipbuilding components, and reforms such as the extension of the tonnage tax regime to inland vessels, are “laying the foundation of a globally competitive maritime ecosystem.

“Our vision is to make India a design–build–finance–own–repair–recycling powerhouse. A future where a far larger share of India’s EXIM cargo sails on Indian-built and Indian-owned vessels. We are fixing historic cost disadvantages, creating world class clusters and accelerating the green transition that will power Viksit Bharat 2047.”

He urged all stakeholders to seize this moment of transformation.

‘Shivalik symbolises resilience, capability’

Welcoming the vessel, Mr Sonowal said that its induction, by the SCI, reflects India’s growing capacity for self-reliance in the shipping sector and its increasing participation in the global energy trade.

“The arrival of Shivalik under our national flag is not just a fleet expansion, it is a statement of confidence in India’s maritime resurgence… and our growing strength as a leading global maritime nation.” 

“This initiative reinforces India’s commitment to building a strong, self-reliant and globally competitive shipping sector to set the economy sail towards Viksit Bharat.”

The 82,000 CBM VLGC Shivalik, named after the Himalayan range, was inducted into SCI’s fleet on September 10, 2025, and joins Sahyadri and Anandamayi as the corporation’s third VLGC. Built in South Korea, the 225-metre-long carrier represents cutting-edge maritime engineering with segregated tanks, advanced temperature control, and compliance with global safety and efficiency standards, highlighted a Ministry release.

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