State-owned Oil and Natural Gas Corporation Ltd (ONGC) has incorporated a Right of First Refusal (RoFR) clause in its global tender for building four Platform Supply Vessels (PSVs), offering Indian shipyards an opportunity to match the lowest bid quoted by foreign competitors in a contract potentially worth over ₹1,000 crore.
In a commercial amendment issued on February 5, ONGC said that qualified Indian shipyards will be allowed to exercise the RoFR by matching the lowest evaluated price offered by a foreign shipyard. If the lowest-priced Indian bidder declines or fails to match the foreign bid, the option will pass on to the next eligible Indian bidder in ascending order.
The move aligns with the Right of First Refusal guidelines issued by the Ministry of Ports, Shipping and Waterways in 2019 for vessel acquisition, aimed at promoting domestic shipbuilding.
ONGC’s decision follows criticism from local shipbuilders over the company’s move to float a global tender for PSVs—a vessel category they argue is well within the technical and execution capabilities of small and medium Indian shipyards. The Shipyards Association of India (SAI) had urged the Ministry of Petroleum and Natural Gas to prioritise Indian yards, citing the revamped Shipbuilding Financial Assistance scheme, which mandates 30–40 per cent indigenous content to qualify for government support.
However, ONGC has not accepted several other demands from domestic shipbuilders, including easing the earnest money deposit requirements, lowering the performance bank guarantee, and reducing the financial turnover eligibility threshold of ₹175 crore.
The oil major also declined requests to relax restrictions on sourcing critical equipment from countries sharing a land border with India, citing commercial considerations and customer interests.
The tender comes amid a renewed policy push to strengthen India’s shipbuilding ecosystem. In September last year, the Union Cabinet approved a ₹69,725-crore package aimed at positioning India among the world’s top 10 shipbuilding nations by 2030 and the top five by 2047.