Nine shipbuilding firms from three countries are bidding for a contract worth about $540 million to build four super tankers for Shipping Corporation of India (SCI), a news report said.
Six firms are from South Korea, two from China and one from India.
State-owned SCI is now shortlisting the technically qualified applicants who can submit price bids for the contract.
At current market prices, each VLCC will cost around $135 million to build and can carry as much as 318,000 tonnes of crude oil.
The Korean bidders are Hyundai Heavy Industries Co Ltd (HHI), Samsung Heavy Industries Co Ltd, Daewoo Shipping and Marine Engineering Co Ltd, Hyundai Samho Heavy Industries Co Ltd, STX Shipbuilding Co Ltd and Hanjin Heavy Industries and Construction Co Ltd.
They have all submitted initial technical bids for the contract, according to the report.
China's Dalian New Shipbuilding Heavy Industries Co Ltd and Jiangsu Eastern Shipyard have also bid for the contract. India's lone bidder is private firm Pipavav Shipyard Ltd.
South Korea is currently the world's largest shipbuilder, followed by China and Japan.
SCI, India's biggest ocean carrier, currently owns and operates three VLCCs, and a fourth will join the company's fleet in June 2009.
The company is looking to buy four more VLCCs to boost its position in the energy transportation sector.
In the wake of the global financial credit crunch, orders for new shipbuildings are melting away and shipbuilders are eager to secure orders.