Tanker Power: IOCL and NIIF Chart a Course for Indian Shipbuilding

Indian Oil Corporation (IOCL) and the National Investment and Infrastructure Fund (NIIF) are in discussions to form a joint venture aimed at owning and operating crude oil tankers—part of a broader initiative to bolster India’s maritime and shipbuilding sectors.

The collaboration, formalised through a recently signed memorandum of understanding (MoU), identifies maritime infrastructure as one of four key focus areas for joint investment. The move aligns with the Indian government’s long-term vision to position India among the world’s top five shipbuilding nations by 2047.

As part of the proposed plan, 10 Medium Range (MR) oil tankers are expected to be commissioned—seven for IOCL, two for BPCL, and one for HPCL. IOCL is expected to act as the nodal agency, with an expression of interest (EoI) for the procurement process likely to be issued in the coming weeks.

Indian shipyards such as Cochin Shipyard, Swan Defence and Heavy Industries, and L&T Shipbuilding have already submitted indicative cost estimates. The initiative is designed to promote indigenous shipbuilding capabilities and establish Indian yards as reliable, globally competitive partners for high-quality and cost-efficient vessel construction.

News by Rahul Yelligetti.