Oil and Natural Gas Corporation’s (ONGC) decision to float a global tender for building four platform supply vessels (PSVs) worth over ₹1,000 crore has sparked criticism from the domestic shipbuilding industry, which says the move undermines the government’s ‘Make in India’ program.
Industry executives argue that Indian shipyards are fully capable of constructing PSVs and that ONGC’s preference for international competitive bidding “contradicts” the Centre’s efforts to strengthen local shipbuilding through infrastructure upgrades and policy support.
The global tender, issued on September 19—just a day before Prime Minister Narendra Modi launched India’s shipbuilding push at Bhavnagar with the slogan “chip or ship, everything should be made in India”—was seen by industry players as a “negative signal” to global markets about the competence of Indian shipyards.
“PSVs have been successfully built in India and even exported. ONGC’s move seems to circumvent domestic options under the pretext of procurement rules for projects above ₹200 crore,” an industry executive said.
ONGC has defended the decision, stating that procurement norms mandate global tendering for contracts exceeding ₹200 crore. The company added that the tender will comply with ‘Make in India’ guidelines, allowing local shipyards the right to match the lowest foreign bid if it falls within 10 per cent.
While ONGC believes international competition ensures the best value, shipbuilders argue that prioritising domestic yards, at least for less complex vessels, would better align with national policy. Industry stakeholders are now urging the government to clarify its stance and support Indian shipyards to build confidence and foster long-term growth.