In a major boost to India’s ambitions to emerge as a global shipbuilding hub, state-owned Oil and Natural Gas Corporation Ltd (ONGC) has floated a global tender to construct four advanced Platform Supply Vessels (PSVs), potentially worth over ₹200 crore. The move comes with a clear push to promote domestic manufacturing under the government’s flagship ‘Make in India’ initiative.
Issued just a day before Prime Minister Narendra Modi is set to launch India’s shipbuilding ambitions from Bhavnagar, Gujarat, the tender marks a significant step toward reviving and strengthening the local maritime industry.
While the tender is open to international shipbuilders due to government rules mandating global bidding for projects above ₹200 crore, Indian shipyards have been given a strategic advantage. As per ‘Make in India’ guidelines, if an Indian shipyard’s bid is within 20% of the lowest foreign bid, it will be allowed to match the price and win the contract.
Strategic Asset Development
Currently, ONGC largely depends on chartered vessels, many of which are registered overseas, for its offshore operations. However, the company now aims to build and own a fleet of strategic vessels to ensure stability in operations and to reduce exposure to volatile charter hire rates and ship availability issues.
“ONGC wants to own a few vessels of different categories as strategic assets,” said a government official familiar with the development. These include specialised ships such as diving support vessels, geo-technical survey vessels, anchor handling tugs, well stimulation ships, offshore supply vessels, and tankers.
112 Ships Needed Over Next 10–15 Years
The tender is the first among a series planned by PSU oil companies following recommendations from a government-backed joint working group. The group, formed last year, estimated a requirement of around 112 ships over the next 10–15 years, including 30 Medium Range oil tankers, 24 very large gas carriers, and several offshore vessels.
A technical working group has also been constituted to assist in drafting technical specifications and tender documents, given the limited experience among oil PSUs in ship procurement.
Policy Push and Financial Incentives
The PSV tender is part of a broader maritime development strategy backed by several new policy measures. Under the revamped Shipbuilding Financial Assistance Policy, Indian shipbuilders will receive:
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15% assistance for normal ships up to ₹100 crore,
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20% for advanced or specialised vessels over ₹100 crore, and
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25% for green ships, for a period of ten years.
To further support the industry, the government will establish a ₹25,000 crore Maritime Development Fund (MDF) aimed at providing long-term, low-cost financing for shipbuilding, port development, shipping, and inland water transport.
Conclusion
By launching the PSV tender with preferential treatment for domestic shipyards, ONGC has become the first PSU to implement the government’s vision of indigenising shipbuilding and reducing reliance on foreign-flagged vessels. With significant financial backing and policy support, India is taking decisive steps toward positioning itself as a global shipbuilding power.
