India is set to invest ₹85,000 crore (approximately $10 billion) to acquire 112 domestically built crude oil tankers by 2040. This strategic initiative aims to bolster the nation’s energy security and reduce reliance on foreign-owned vessels.
Strengthening Energy Security
As the world’s third-largest oil importer, India currently depends heavily on chartered tankers from international operators. The new plan seeks to establish a robust, state-controlled fleet to ensure uninterrupted energy supplies. The first phase involves purchasing 79 ships, including 30 medium-range vessels, with an initial order for 10 tankers expected soon.
Boosting Domestic Shipbuilding
To qualify for procurement, all tankers must be constructed in India, even if built in collaboration with foreign partners. This requirement is designed to stimulate the domestic shipbuilding industry, which currently lacks scale due to limited demand. The government has also established a ₹25,000 crore fund to support the maritime sector and reduce dependence on foreign-made ships.
Expanding Refining Capacity
India’s crude oil refining capacity is projected to increase from approximately 250 million tonnes to 450 million tonnes annually by 2030, driven by rising domestic and global demand for oil products. This expansion underscores the need for a dedicated fleet to transport increased volumes of crude oil efficiently. India News Network
Long-Term Goals
The government aims to raise the share of locally built oil tankers in the national fleet from the current 5% to 7% by 2030, with a long-term target of 69% by 2047—the year India aspires to achieve developed nation status.
International Collaborations
To enhance domestic shipbuilding capabilities, India is engaging with international shipbuilders. South Korea’s HD Hyundai Heavy Industries is reportedly in talks with Cochin Shipyard Ltd. to establish a shipbuilding facility in Kochi. Discussions are also underway with Japan’s NYK Line and Samsung Heavy Industries to explore potential partnerships.