The Indian government will adopt a structured tender approach for manufacturing specialized vessels such as gas and oil tankers and fertilizer carriers, focusing on building resilience in the shipping sector amid the West Asia conflict and increased global supply chain disruptions.
Structured Tender Strategy
Under this approach, some vessels in the tender would be built overseas, while the remaining will mandatorily be manufactured in India, the shipping ministry stated on Thursday. This strategy is intended to facilitate technology transfer and strengthen India’s domestic capabilities in the sector.
Demand Aggregation
The government has aggregated demand for 437 vessels so far to boost domestic availability and manufacturing, according to Mukesh Mangal, additional secretary in the shipping ministry. He noted that oil and gas public sector undertakings (PSUs) require around 59 vessels, the Shipping Corporation of India (SCI) has assessed a demand of 216 vessels, and Bharat Container Shipping Line (BCSL) arrived at a requirement of 51 vessels.
Bidding Targets
Mangal stated that there is a target to invite bids for procuring 61 vessels this year, and tenders for 34 vessels have already been floated. Data shows that oil and gas PSUs have invited bids for 14 vessels, including LPG and crude tankers, out of the target of 26 for this year.
Push for Self-Reliance
Shipping minister Sarbananda Sonowal has urged fertilizer PSUs and major manufacturers to aggregate their demand for domestic production as part of the government’s push to make India self-reliant in this sector. Mangal explained that while green tugs and medium-range tankers are being built domestically, for vessels like very large gas carriers and very large crude carriers, the government is going for structured tenders.
For example, if eight such vessels are to be manufactured, two can be built overseas and six must be manufactured within India. Such vessels require very specialized technology and manpower.
