India to invest Rs. 85,600 crore (US$ 10 billion) in homegrown oil tanker fleet by 2040

India plans to invest Rs. 85,600 crore (US$ 10 billion) to acquire 112 crude oil tankers by 2040 to enhance energy security and reduce dependence on foreign-owned fleets, according to sources familiar with the matter. Currently, most of the tankers state-owned oil companies use are ageing and chartered from global players. The shipping and petroleum ministries aim to reverse this trend. The initiative's first phase includes procuring 79 vessels, of which 30 will be medium-range tankers. A purchase order for the initial batch of 10 ships will be issued this month. Only tankers built in India, even with foreign collaboration, will be considered eligible.
India’s crude refining capacity is set to rise from 250 million tonnes to 450 million tonnes by 2030, driven by domestic and global demand. To support this, the government aims to increase the share of locally built tankers from 5% to 7% by 2030 and eventually to 69% by 2047. The move is aligned with India’s vision of becoming a developed economy. A Rs. 25,000 crore (US$ 2.92 billion) fund has already been announced to strengthen the maritime sector and incentivise local shipbuilding. India also wants to expand its domestic coal, fertilizer, and steel shipping capacity. The government is engaging with shipbuilders from Japan and South Korea, including HD Hyundai Heavy Industries, Samsung Heavy Industries, and Nippon Yusen KK (NYK Line), to build locally with incentives. The goal is to provide demand-side stimulus to scale up India’s nascent shipbuilding industry and reduce reliance on China for maritime services.

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