MUMBAI — Cochin Shipyard, L&T Shipbuilding, and Swan Defence and Heavy Industries (SDHI) have submitted bids to build eight Very Large Gas Carriers (VLGCs) in a landmark $1 billion deal. This marks the first time these sophisticated 88,000-cubic-meter vessels will be constructed in India.

The project is led by a Shipping Corporation of India (SCI) joint venture with state-run oil giants IOCL, BPCL, HPCL, and ONGC.

Global Tech Tie-ups

To bridge the domestic technical gap, each Indian firm has partnered with a South Korean shipbuilding leader:

• Cochin Shipyard: Partnered with HD Korea Shipbuilding (KSOE) (World #1).
• L&T Shipbuilding: Partnered with Hanwha Ocean Co Ltd.
• SDHI: Partnered with Samsung Heavy Industries.

The "Make in India" Plan

The deal follows a strategic split to build local expertise:

• International Build: 2 vessels will be built abroad to establish technical baselines.
• Domestic Build: 6 vessels must be built at Indian shipyards via the South Korean partnerships.

Strategic Impact & Incentives

This project is a cornerstone of India’s Maritime Amrit Kaal Vision 2047, aiming to place the country in the global top five for shipbuilding. It is supported by a ₹69,725 crore government package, including:

• Shipbuilding Financial Assistance (SBFAS): To offset cost differences with foreign yards.
• Maritime Development Fund: Providing ₹25,000 crore in long-term financing.

The move significantly reduces India's reliance on foreign vessels for transporting critical energy resources like LPG.