Sonowal : Govt to strengthen national fleet with SCI capital infusion and new tanker tenders
NEW DELHI : Union Minister for Ports, Shipping and Waterways Shri Sarbananda Sonowal announced that, the Government of India will infuse fresh capital into the Shipping Corporation of India (SCI) through the newly established Maritime Development Fund (MDF), aimed at expanding the national fleet and reinforcing the country’s strategic maritime capacity.
As part of this initiative, the Ministry has already floated tenders to acquire four medium-range (MR) product tankers, marking the beginning of SCI’s expansion drive under the new maritime investment framework.
Joint Ventures with CPSEs
The Centre is also planning to establish joint ventures between SCI and other central public sector enterprises (CPSEs) — particularly in the oil and dry bulk sectors — to meet India’s growing export-import shipping requirements.
“SCI is a strategic national asset,” Sonowal emphasized, noting that its significance has grown amid increasing global geopolitical and trade disruptions.
Global Disruptions Urgency
Highlighting recent global challenges, Sonowal cited multiple shocks to global supply chains, including the Covid-19 pandemic, the Russia–Ukraine conflict, rising tensions in West Asia, shipping diversions away from the Suez Canal, and recent U.S. tariff policies.
“These disruptions have led to container shortages, higher freight rates, and delayed shipments. Strengthening SCI and India’s fleet capacity is now a national priority,” he said.
In the short term, SCI will acquire second-hand vessels to boost operational capacity quickly.
In the long term, the corporation will order new build vessels from Indian shipyards, supported by joint ventures with oil and bulk PSUs. The first tender for four MR tankers is expected to be finalized within October 2025.
The capital infusion comes on the back of the Union Cabinet’s approval of a ₹69,725 crore shipbuilding revival package, which includes three major components:
Maritime Development Fund (₹25,000 crore): Long-term financial support for fleet expansion and port infrastructure.
Shipbuilding Financial Assistance Scheme (₹24,736 crore): Extended till March 2036 with enhanced support to domestic shipyards.
Shipbuilding Development Scheme (₹19,989 crore): Creation of mega shipbuilding clusters, targeting a domestic capacity of 4.5 million gross tonnage annually.
With the planned capital infusion, fleet expansion, and strategic partnerships, SCI is set to emerge as a key pillar in India’s maritime and geopolitical strategy. The initiatives also align with the government’s broader vision to make India a global shipbuilding and shipping hub over the next decade.