Swan Defence and Heavy Industries Ltd (SDHI), a Mumbai-listed shipbuilder, is set to secure an order worth approximately ₹1,897 crore ($196 million) to construct four Medium Range (MR) product tankers for a proposed joint venture led by state-run Shipping Corporation of India Ltd (SCI), according to reports citing sources familiar with the bidding process.
SDHI emerged as the lowest bidder after quoting around $48.9 million per vessel when price bids were opened on October 9, 2026. The company outbid state-run Cochin Shipyard Ltd, which reportedly quoted approximately $4 million more per vessel.
The tender floated by SCI covers two firm orders and two optional vessels. Each dual-fuel-ready tanker will have the capacity to carry approximately 17,000–18,000 tonnes of cargo. The order, once formally awarded and contracted, would mark the first attempt in 25 years to build oil product tankers domestically.
SDHI has a technical collaboration with South Korea’s Samsung Heavy Industries, one of the country’s leading shipbuilders. The proposed contract would further strengthen the order book of the shipyard, which resumed operations in 2024 under new management led by Swan Corp. The facility is among India’s largest shipyards by dry dock capacity.
SDHI has been securing orders across multiple vessel segments as it seeks to expand its shipbuilding portfolio. These include an agreement with Energy ONE Ltd for four dual-fuel ammonia-powered bulk carriers, valued at an estimated $240 million–$280 million, and a $227 million contract with European shipowner Rederiet Stenersen AS for six chemical tankers, each with an 18,000-tonne capacity.
The shipyard, led by Vivek Merchant, has also signed a contract with Copenhagen-based towage and marine services specialist Svitzer Group A/S to build four biofuel-powered TRAnsverse tugs in a deal valued at approximately ₹500 crore.
The proposed tanker order comes amid the government’s efforts to strengthen domestic shipbuilding capacity and reduce dependence on overseas yards for specialised vessels. State-owned shipping and oil marketing companies are expected to play a key role by providing order support to Indian shipbuilders.
The initiative forms part of a broader policy push backed by a ₹69,725 crore package approved by the Union Cabinet in September 2025 to scale up the country’s shipbuilding industry.
If finalised, the contract would represent a significant milestone for India’s commercial shipbuilding sector, reviving domestic construction of oil product tankers after a gap of a quarter-century while adding a new category of vessels to the country’s expanding shipbuilding pipeline.