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India to Build 112 Crude Tankers in ₹85,000 Cr Push

India is reportedly planning to invest ₹85,000 crore (approximately $10 billion) by 2040 to acquire 112 domestically built crude oil tankers, aiming to reduce its reliance on foreign-owned vessels and strengthen maritime and energy security, according to a Bloomberg report citing sources familiar with the matter.

Currently, state-run oil companies lease aging tankers from international operators. The petroleum and shipping ministries now aim to reverse this trend by building a fleet under Indian ownership.

In the first phase of the plan, India is expected to procure 79 tankers, including 30 medium-range vessels. The initial purchase order, covering 10 ships, is likely to be placed this month. Only vessels built in India — even if in partnership with foreign firms — will reportedly qualify for procurement under the plan.

Despite the global shift toward cleaner energy, India is expanding its crude oil refining capacity from 250 million tonnes to 450 million tonnes annually by 2030 to meet growing domestic and international demand for petroleum products. Given the country’s high dependence on imported crude, building indigenous shipping capacity is considered essential to ensure stable energy trade flows.

India aims to raise the share of locally built crude carriers from the current 5% to 7% by 2030, and further to 69% by 2047 — the year it targets becoming a developed nation.

To support this vision, the Modi government in 2025 announced a ₹25,000 crore fund to strengthen the maritime sector, reduce dependence on foreign-built vessels, and promote domestic shipbuilding. The broader plan includes construction of vessels for transporting coal, fertilizers, and steel, ultimately transitioning to a fleet largely built in India.

India’s shipbuilding sector has traditionally lagged due to limited domestic demand. However, government officials believe that attracting global players to manufacture for export from India will help achieve economies of scale.

India’s largest homegrown tanker, the MT Maharshi Parashuram, measures 238 meters with a deadweight tonnage of 93,332 — significantly smaller than China’s 380-meter-long Oceania supertanker, which has a 441,584-tonne capacity.

To accelerate shipbuilding capabilities, the Indian government is reportedly engaging shipbuilders from South Korea and Japan, offering incentive-based partnerships. South Korea’s HD Hyundai Heavy Industries is said to be in talks with Cochin Shipyard Ltd. to establish a shipbuilding facility in Kochi. Discussions have also taken place with Samsung Heavy Industries and Japan’s NYK Line to explore potential collaborations in domestic shipbuilding.

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