India plans to invest ₹85,600 crore to acquire 112 crude oil tankers by 2040 in a bold move to enhance energy security and reduce reliance on foreign-owned vessels. This ambitious strategy targets a significant shift in the country’s oil shipping practices, where state-owned oil firms currently depend heavily on ageing tankers chartered from international operators.
Phase-Wise Acquisition Begins with 10 Vessels
The first phase of the initiative will see the procurement of 79 vessels, including 30 medium-range tankers. As a concrete step forward, a purchase order for the initial batch of ten ships is expected to be issued within this month. Importantly, only tankers built in India—either independently or through foreign collaboration—will be eligible under this program, reflecting the government’s commitment to boost domestic manufacturing.
Rising Refining Capacity Fuels Demand
India’s refining capacity is on a steep growth trajectory, projected to rise from 250 million tons to 450 million tons by 2030. This surge, driven by both domestic consumption and global demand, underscores the urgent need for a robust and self-reliant shipping infrastructure.
Boosting Domestic Shipbuilding Share
To support this transformation, the government aims to increase the share of locally built tankers from the current 5% to 7% by 2030, with a long-term goal of reaching 69% by 2047. This aligns with India’s broader vision of becoming a developed economy by mid-century.
Strategic Push Through Maritime Development Fund
As part of its broader maritime strategy, the government has already announced a ₹25,000 crore fund to strengthen the shipping sector and incentivise domestic shipbuilding. This initiative also extends to expanding local capacity for shipping coal, fertilisers, and steel.
Collaboration with Global Shipbuilders
To ensure technological support and capacity building, India is actively engaging with renowned shipbuilders from Japan and South Korea, including HD Hyundai Heavy Industries, Samsung Heavy Industries, and Nippon Yusen KK (NYK Line). These collaborations are expected to bring in expertise while ensuring vessels are manufactured within India under incentivised terms.
Reducing Reliance on China, Stimulating Local Industry
Ultimately, the initiative seeks to provide a strong demand-side stimulus to scale up India’s nascent shipbuilding ecosystem. By doing so, the government aims to reduce dependency on Chinese maritime services and establish India as a formidable player in global shipping and energy logistics. As reported by ibef.org, the strategic move not only strengthens India’s energy infrastructure but also aligns with its long-term goals of industrial self-reliance, job creation, and global competitiveness in maritime trade.
