Swan Defence and Heavy Industries Limited has secured India’s first-ever order for ammonia dual-fuel vessels — a landmark contract with Energy ONE Limited for the construction of four 92,500 deadweight tonne bulk carriers equipped with ammonia-fuelled propulsion systems at SDHI’s Pipavav shipyard in Gujarat. The deal, categorised as a Category 4 contract with a value range between ₹1,501 crore and ₹3,000 crore, represents one of the largest commercial shipbuilding orders in India’s history both in terms of vessel scale and technological sophistication.
Each of the four vessels will measure 229.5 metres in length with a beam of 37 metres — placing them among the largest commercial ships ever contracted for construction at an Indian yard. The vessels will be designed by South Korean firm KMS-EMEC and classed by Det Norske Veritas (DNV), one of the world’s leading classification societies, ensuring that they meet the highest international safety and environmental standards. The first vessel is expected to be delivered in October 2029, with the three subsequent ships following at four-month intervals.
Why Ammonia — and Why Now
Ammonia is emerging as one of the most promising zero-carbon marine fuels for the post-2030 shipping world, given its high energy density, established global production and distribution infrastructure, and zero carbon dioxide emissions at point of combustion. The International Maritime Organization’s net-zero emissions target for shipping by 2050 is driving a global race among shipyards, carriers, and fuel producers to develop commercially viable ammonia-powered vessels — and SDHI’s Pipavav order places India on that frontier for the first time.
Vivek Merchant, Director of SDHI, said the order reflects the confidence global stakeholders are placing in Indian shipbuilding capabilities. The contract was also notable for its financial backing: Energy ONE Limited acts as general partner for New Energy One — a Jersey-registered investment fund with a total capital program of USD 2 billion targeting zero-emission shipping newbuildings. NEO has additionally executed an MoU with Sagarmala Finance Corporation for co-investment under India’s Maritime Development Fund, creating a direct link between this order and India’s government-backed maritime finance ecosystem.
SDHI’s Remarkable Turnaround and India’s Shipbuilding Ambition
SDHI’s emergence as the winner of India’s first ammonia dual-fuel order is itself a remarkable story. The company, formerly known as Reliance Naval and Engineering Limited, went through years of financial difficulty and operational suspension before being acquired and relaunched in late 2024. In less than two years since relaunch, SDHI has cleared backlog obligations, secured India’s first product tanker order from a Norwegian owner, and now bagged the country’s first green ammonia vessel order — a trajectory that few turnaround stories in global shipbuilding can match. SDHI’s share price surged 4-5 per cent on the announcement, reflecting market recognition of the significance of the order for the company’s long-term positioning.
