India is taking a decisive step towards reshaping how its state-run energy cargo is transported across global sea routes, with Oil and Natural Gas Corporation Limited (ONGC) set to join the proposed shipping joint venture led by The Shipping Corporation of India Ltd. (SCI).
The move brings ONGC alongside Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited in the JV, slightly altering the equity structure while significantly strengthening its strategic foundation. As India’s largest upstream oil and gas producer, ONGC brings a substantial and assured cargo base, accounting for the highest vessel requirements among the participating public sector undertakings.
The joint venture plans to acquire around 59 vessels over the next five years, including crude oil carriers, gas carriers, product tankers and offshore support vessels, with a total estimated investment of about ₹15,000 crore. The model is built on long-term cargo commitments from oil PSUs, professional fleet management and freight rates linked to market benchmarks, aiming to reduce dependence on foreign tonnage and volatile spot charters.
The involvement of Sagarmala Finance Corporation Ltd, investing on behalf of the Maritime Development Fund, further signals the government’s intent to deploy institutional capital to revive and strengthen India’s shipping ecosystem.
If implemented effectively, the initiative could mark a structural shift from fragmented chartering practices to a coordinated, long-term shipping strategy, enhancing energy security while rebuilding India’s national shipping capacity.