Swan Defence and Heavy Industries Ltd set to win Rs 1,897 crore tanker order

Mumbai: Mumbai-listed Swan Defence and Heavy Industries Ltd (SDHI), is set to win a Rs 1,897 crore ($196 million) order from a proposed joint venture of state-run shipping and oil marketing companies led by Shipping Corporation of India Ltd (SCI) for constructing four dual-fuel ready so-called Medium Range product tankers, the first such carriers to be built locally in 25 years.

SDHI, which has a technical tie-up with Samsung Heavy Industries Co., Ltd, one of South Korea's top three shipbuilders, quoted some $48.9 million per vessel when the price bids were opened on Friday (October 9), multiple sources briefed on the bid details said.

SCI floated the tender to construct two firm and two optional dual-fuel ready Medium Range product tankers, each with a capacity to load 17,000-18,000 tons of cargo.


In the tender, SDHI pipped state-run Cochin Shipyard Ltd which quoted some $4 million more.

The MR tanker building order, when signed, will boost the order book of SDHI, India's largest shipyard by dry dock capacity, which re-started operations in 2024 under a new management led by Swan Corp.

The yard has previously secured orders from Energy ONE Ltd for constructing four dual-fuel ammonia bulk carriers in a deal worth between $240-280 million (Rs 2,230-Rs 2,603 crore) and six chemical tankers of 18,000-ton capacity each worth $227 million from European shipowner Rederiet Stenersen AS.

The yard led by Vivek Merchant has also signed a contract with Copenhagen-based towage and marine services specialist Svitzer Group A/S for constructing four biofuel powered TRAnsverse tugs worth about Rs 500 crore.

This is the first attempt in a quarter of a century to build oil tankers locally, kicking off a much-awaited government plan to scale up the shipbuilding industry with order support from state-run firms on the back of a Rs 69,725 crore package approved by the Cabinet in September 2025.