Shipping Corporation of India Ltd (SCI) has executed a memorandum of agreement on 4 July 2025 to acquire two second-hand Very Large Gas Carriers (VLGCs) with a cargo capacity of approximately 82,000 CBM each, according to the company's release.
The deal, valued at about $127 million, marks SCI’s first vessel purchase in eight years and supports its strategy to augment tonnage capacity.
Under current time‑charter rates of $41,000–42,000 a day for a one‑year hire, the vessels are expected to add approximately ₹260 crore in annual revenue.
SCI plans to induct the vessels into its fleet in the current quarter of FY 2025–26.
Shipbrokers suggest the vessels may be ‘Bu Sidra’ (2008) and ‘Lubara’ (2009), formerly owned by Milaha VLGC Ltd, a unit of Qatar Navigation.
The acquisition will utilize ₹133.85 crore remaining from the 2010 follow-on public offer, originally earmarked for ship purchases.
This approach enables SCI to bolster its fleet swiftly through the second-hand market, after an eight-year pause and amid a stalled privatisation process.
SCI intends to deploy the vessels under the Indian flag for a state‑run oil marketing company.
The Reserve Bank of India in June eased prior remittance rules for ship imports, raising the no‑guarantee remittance limit from $5 million to $50 million.
Founded in 1961 via merger of Eastern and Western Shipping Corporations, SCI is India’s largest state‑owned shipping company, with a fleet of 59 vessels covering tankers, bulk carriers, gas carriers, container ships and offshore support services.