India’s leading oil refiners and the national carrier are set to form a strategic maritime joint venture aimed at strengthening domestic shipping capacity and reducing reliance on foreign vessels for crude and petroleum product transportation.
State-run refiners — Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) — will together hold a 35 per cent stake in the proposed venture. The Shipping Corporation of India (SCI) will hold a majority 50 per cent stake, while the remaining 15 per cent will be owned by the Maritime Development Fund (MDF).
SCI Chairman B K Tyagi confirmed that technical specifications and tender terms are currently being finalised. The initiative is designed to progressively onshore India’s chartering requirements, a move expected to significantly reduce the country’s annual ₹6 lakh crore expenditure on foreign-flagged vessels for inbound and outbound cargo logistics.
According to industry estimates, India’s overseas freight and logistics costs represent a substantial foreign exchange outflow. By participating in the joint venture, oil marketing companies aim to reduce dependence on foreign tonnage, conserve forex reserves, and enhance India’s long-term energy security.
The proposed JV plans to acquire 59 vessels, including Very Large Crude Carriers (VLCCs), Very Large Gas Carriers (VLGCs), and offshore vessels. The acquisition strategy will combine second-hand purchases from the global market with newbuild vessels from Indian shipyards. The total investment is estimated at ₹15,000–17,000 crore.
Under the structure, SCI will provide technical, operational, and regulatory expertise, while IOCL, BPCL, and HPCL will ensure cargo commitments through long-term charter contracts. The vessels procured by the JV will be managed by SCI for a designated management fee.
The MDF, a government-backed blended finance initiative with a corpus of ₹25,000 crore, has been established to catalyse private investment and provide long-term financing to India’s maritime sector.
The joint venture marks a significant step toward strengthening India’s maritime self-reliance, boosting domestic ship ownership, and reinforcing the country’s energy and trade security framework.