May30 , 2026

    Major Shipyards Compete for Oil PSU MR Tanker Contracts

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    Leading shipbuilders, including Cochin Shipyard Limited, Larsen & Toubro, Garden Reach Shipbuilders & Engineers in partnership with Hindustan Shipyard Limited, and South Korea’s Samsung Heavy Industries, have submitted bids to construct Medium Range (MR) tankers for India’s state-run oil companies.

    The proposed vessels are intended to strengthen the coastal and international product transport capabilities of public sector oil marketing companies. MR tankers, typically ranging between 45,000 and 55,000 deadweight tonnes (DWT), are widely used for carrying refined petroleum products such as diesel, petrol and jet fuel.

    The tender is seen as strategically significant, aligning with the government’s push to expand the Indian-flag fleet and enhance maritime self-reliance. Authorities have been encouraging domestic shipbuilding under broader initiatives aimed at boosting local manufacturing and reducing dependence on foreign-built vessels.

    Industry sources indicate that the project could involve multiple vessels, with an emphasis on modern, fuel-efficient designs compliant with international environmental regulations. The inclusion of both Indian and foreign shipbuilders underscores the competitive nature of the bidding process.

    If awarded, the contracts would provide a major boost to domestic shipyards, supporting employment, ancillary industries and technology transfer. The development also reflects growing demand from oil PSUs to modernise and expand their tanker fleets amid rising energy trade volumes.

    The evaluation process is expected to consider technical capabilities, delivery timelines, cost competitiveness and localisation commitments before final contracts are finalised.

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