Industry urges balanced risk-sharing to strengthen domestic shipbuilding and encourage wider participation.

Indian Shipbuilders Seek Fairer Tender Terms for Government Commercial Shipbuilding Programme.

The Shipyards Association of India (SAI) has urged the government to revise tender conditions for its commercial shipbuilding programme, particularly for Medium Range (MR) tankers and container vessels, to ensure balanced risk allocation and attract greater participation from Indian shipyards. SAI has recommended introducing Exchange Rate Variation (ERV) and steel price indexation clauses to protect shipbuilders from foreign exchange and raw material price volatility during long project cycles. It also seeks a cap on liquidated damages, standardised milestone-based payment schedules, realistic delivery timelines, reduced bank guarantee requirements, and fairer termination provisions. According to SAI, several of these measures have already been adopted in ONGC’s Platform Supply Vessel (PSV) tender, proving their practicality. The association believes aligning future tenders with these provisions will improve transparency, reduce financial risks, enhance project viability, and enable Indian shipyards to submit more competitive bids, supporting the government's vision of strengthening indigenous commercial shipbuilding.