The government will infuse capital into Shipping Corporation of India (SCI) through the newly created Maritime Development Fund (MDF) to expand its fleet and strengthen India’s strategic shipping capacity, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said.
He announced that bids have already been floated to procure four medium-range (MR) product tankers, marking the first step in SCI’s expansion plan.
Joint Ventures with Oil & Bulk PSUs
The Centre is planning to form joint ventures between SCI and other central public sector enterprises (CPSEs)—particularly oil and dry bulk companies—to meet India’s growing export-import shipping needs.
“SCI is a strategic asset,” Sonowal said, stressing that the national carrier’s importance is rising amid global geopolitical uncertainties.
Global Disruptions Driving Urgency
Sonowal pointed out that global supply chains have faced continuous shocks due to:
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Covid-19 pandemic
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Russia–Ukraine conflict
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Rising tensions in West Asia
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Shipping lines avoiding the Suez Canal
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Recent U.S. tariffs under President Donald Trump, disrupting trade patterns
These disruptions have caused container shortages, extended transit times, and delayed shipments.
“SCI and the Indian fleet need to be augmented on an immediate basis,” he said.
Immediate Purchases & Long-Term Fleet Building
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Short term: SCI is procuring second-hand vessels to boost capacity quickly.
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Long term: New vessels are being ordered from Indian shipyards, in consultation with proposed JVs.
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The first tender for four MR tankers will be floated within October, specifically for SCI’s JVs with oil companies.
Massive ₹69,725 Crore Shipbuilding Push
The Union Cabinet recently approved a ₹69,725 crore package to revive domestic shipbuilding, which includes:
✅ Maritime Development Fund (MDF) – ₹25,000 crore
• Long-term financing support for fleet expansion and maritime infrastructure
✅ Shipbuilding Financial Assistance Scheme (SBFAS) – ₹24,736 crore
• Extended till March 31, 2036 with enhanced support
✅ Shipbuilding Development Scheme (SbDS) – ₹19,989 crore
• Development of mega shipbuilding clusters
• Target to raise domestic capacity to 4.5 million gross tonnage annually
Outlook
With strategic capital infusion, new tanker orders, and partnerships with major PSUs, SCI is set to play a larger national and geopolitical role in securing India’s maritime trade. The reforms also align with the government’s ambition to make India a global shipbuilding and shipping powerhouse over the next decade.
