Indian Oil Corporation (IOCL) and the National Investment and Infrastructure Fund (NIIF) are exploring a joint venture to own crude oil tankers, marking a strategic push to strengthen India’s shipbuilding sector.

As part of a recently signed memorandum of understanding (MoU), maritime infrastructure is one of four investment areas where IOC and NIIF “will jointly evaluate new investments”. The initiative aligns with the government’s larger vision to make India a top five shipbuilding nation by 2047. The plan includes ordering 10 Medium Range (MR) oil tankers, of which seven will be for Indian Oil Corporation, two for Bharat Petroleum Corporation (BPCL), and one for Hindustan Petroleum Corporation (HPCL).

IOCL is likely to act as the nodal agency for this project, with an expression of interest (EoI) expected in the coming weeks. Local shipyards such as Cochin Shipyard, Swan Defence and Heavy Industries, and L&T Shipbuilding have already provided indicative costs. The government aims to position Indian yards as reliable global partners for timely and cost-effective ship construction to instil confidence among international fleet owners.