The Union Cabinet is expected to soon consider a comprehensive proposal from the Ministry of Ports, Shipping and Waterways that could formally end the privatisation plans of Shipping Corporation of India Ltd (SCI) and Container Corporation of India Ltd (CONCOR), according to multiple government sources.
The proposal combines three major initiatives: a joint venture between SCI and state-run oil companies, the creation of a national container carrier—Bharat Container Shipping Line—and an ambitious fleet expansion plan for SCI. Once cleared, it will nullify earlier Cabinet decisions to privatise the two state-owned firms.
Strategic Shift Ends Privatisation Push
The government’s move marks a clear policy shift from its earlier disinvestment agenda. Plans to privatise CONCOR, approved in 2019, failed to take off due to land leasing issues involving Indian Railways, while SCI’s strategic sale process, initiated in 2020, stalled amid delays and lack of bidder interest following asset demerger challenges.
Sources said the new proposal will also enable the merger of SCI’s core and non-core assets—currently valued at around ₹4,000 crore—which were separated to facilitate privatisation.
National Carrier Gains Strategic Importance
The rethink comes against the backdrop of rising geopolitical tensions, particularly in the Middle East, and their impact on global shipping and energy security. The recent disruptions around the Strait of Hormuz have reinforced the importance of maintaining a strong national fleet.
Officials indicated that India’s neutral diplomatic stance has ensured continued access for Indian-flagged vessels through critical trade routes, underscoring the strategic value of a state-backed shipping line.
SCI-Led JV to Cut Foreign Dependence
Under the proposal, SCI will lead a ship-owning joint venture with major oil companies to reduce reliance on foreign carriers for transporting crude and petroleum products. SCI will hold a 50% stake, while partners include Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, and entities under Oil and Natural Gas Corporation. Sagarmala Finance Corporation Ltd will also participate.
The initiative is aimed at saving foreign exchange, boosting domestic shipbuilding, and strengthening energy logistics.
₹1 Lakh Crore Fleet Expansion Plan
SCI has proposed expanding its fleet to 216 vessels by 2047, adding 10 million gross tonnage with an investment of ₹1 lakh crore. This aligns with the government’s broader ₹69,725 crore maritime development package approved in 2025 to enhance shipping and shipbuilding capacity.
Bharat Container Shipping Line to Boost Trade Competitiveness
A key pillar of the proposal is the formation of Bharat Container Shipping Line, a national carrier designed to reduce India’s dependence on foreign container operators. Currently, India spends an estimated $55 billion annually on container freight paid to global carriers.
The new entity will be jointly promoted by SCI and CONCOR (30% each), Jawaharlal Nehru Port Authority (10%), Chennai Port Authority (5%), V O Chidambaranar Port Authority (5%), and Sagarmala Finance Corporation (20%).
Integrated Logistics Vision
The strategy is to build an integrated logistics ecosystem combining shipping, rail freight, and port operations—enabling India to compete with global majors like Mediterranean Shipping Company, Maersk, CMA CGM, and terminal operators such as DP World and APM Terminals.
Officials say the initiative will enhance India’s export competitiveness by bringing greater control over freight costs and logistics chains.
Policy Reset for Maritime Self-Reliance
The proposed Cabinet decision signals a broader push toward self-reliance in maritime infrastructure and logistics. By strengthening national carriers and building integrated capabilities, the government aims to reduce vulnerability to global disruptions while positioning India as a stronger player in global trade.
