India’s top state-run oil refiners are gearing up to order ten domestically built medium-range tankers worth up to $600 million, as part of a broader national effort to boost local shipbuilding and reduce reliance on foreign vessels.

Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. are expected to issue a joint tender later this year, sources familiar with the matter told Business Standard. Deliveries would begin by 2028, marking a significant step in India’s drive to treat ships as key strategic assets for energy, trade, and defense.

“This move aligns with India’s ambition to build more ships at home and develop shipyards as national assets,” a source said, requesting anonymity.

Although India has over 40 shipyards, only four are currently capable of building vessels larger than medium-range tankers, which typically carry between 50,000 to 60,000 deadweight tons. The expected price per vessel ranges from $55 million to $60 million.

Despite the strategic push, refiners remain cautious about owning and operating the vessels and are reportedly seeking government financial support. Industry insiders say it’s still more economical to charter ships rather than own them.

“There’s hesitation from refiners on the operating side, and they’re in talks with the government for assistance,” one person familiar with the plan said.

Indian Oil Corp. is expected to take the lion’s share, with six tankers, while BPCL and HPCL will each own two.

However, local builds may come at a premium. For comparison, South Korean-made tankers are priced around $50 million, while Chinese-built alternatives cost about $43 million, according to data from Braemar Plc.

Currently, only 13% of India’s petroleum products move by coastal shipping, with more than half transported via pipeline, highlighting room for growth in domestic maritime logistics.