The Shipping Corporation of India (SCI) will invest INR60bn ($1.35bn) to acquire 29 vessels by 2012, as part of its fleet expansion programme.
The SCI will take delivery of 26 ships within the next two years, having already received three vessels.
The deal includes product tankers, crude oil carriers, bulk carriers, supply carriers and anchor handling craft.
The company plans to acquire 62 vessels for about INR135bn ($3bn) and will place an order for the remaining 33 by March 2012.
The SCI owns 76 ships and mans 60 vessels, according to the Economic Times.