India Charts $10 Billion Course to Build Indigenous Oil Tanker Fleet
India is to take a bold move to reduce its reliance on imports. Recently, India has uncovered plans to invest ₹850 crore (approximately $10 billion) in structuring 112 domestically built crude oil tankers by 2040. This initiative aims to enhance the control over energy transportation.
Currently, the state-owned oil companies heavily depend on an ageing fleet and leases from foreign shipping firms. The improvised plan will be led by the petroleum and shipping ministries. This plan aims to transition towards ownership and locally sourced construction of these tankers.
The ships that are built within India, even with collaboration with foreign entities, will be considered for purchase, fuelling the “Made in India” initiative. This initiative will boost domestic manufacturing and reduce dependency on imports.
India’s crude oil capacity is expected to expand from 250 million tons to 450 million tons by the end of the decade, driven by the growing demands of both national and international markets. It is necessary for India to have their own homegrown fleet to carry out other energy supplies trades despite being heavily dependent on crude oil imports.
The government aims to increase the locally built oil tanker shares by 5% to 7% by 2030, with a long-term target of 69% by 2047. PM Modi announced a ₹250 crore fund to support this ambition and strengthen the maritime sector of the country.
Major international shipbuilders are in discussion with the government, including South Korea’s HD Hyundai Heavy Industries and Samsung Heavy Industries. Japan is also coming forward with Nippon Yusen KK (NYK Line) to collaborate.
This is a powerful move that aims to strengthen India’s energy logistics while positioning the nation as a global player in the shipbuilding industry. This move aligns with the broader objectives of economic and industrial development.
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