India Plans ₹850 Billion Investment to Build Crude Tanker Fleet by 2040

India plans to invest ₹850 billion (approximately $10 billion) to build a Domestic fleet of 112 crude oil tankers by 2040, according to a Bloomberg report. This is aimed at reducing the country’s reliance on foreign-chartered vessels and securing long-term energy logistics for crude imports.

79 Ships in Phase One

The plan will be rolled out in phases. The first phase includes the purchase of 79 ships, of which 30 will be medium-range tankers. The initial order for 10 tankers is expected to be issued within the month. Only ships constructed in India will be considered, even if they are built through foreign partnerships.

Existing Fleet and Import Dependency

India is the world’s 3rd-largest importer of crude oil. State-run oil companies currently operate a small and ageing fleet, most of which is chartered from international firms. With crude oil refining capacity projected to grow from 250 million tonnes to 450 million tonnes by the end of the decade, demand for domestic shipping capacity is set to rise.

Domestic Shipbuilding Push

The country aims to increase the share of Indian-built tankers in its fleet from the current 5% to 7% by 2030, and eventually to 69% by 2047. This shift is to provide sustained demand for local shipyards.

India’s shipbuilding industry is still relatively small and lacks economies of scale. The government is inviting foreign shipbuilders from Japan and South Korea to collaborate with Indian yards. Discussions are ongoing with firms like HD Hyundai Heavy Industries, Samsung Heavy Industries, and NYK Line. A new facility in Kochi involving Cochin Shipyard Ltd is reportedly under consideration.

Maritime Plan

In addition to oil tankers, India also plans to add shipping capacity for coal, fertiliser, and steel. Earlier this year, the government announced a ₹250 billion fund to support the domestic maritime sector, with a focus on reducing dependence on foreign-built vessels.

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Conclusion

The proposed investment in oil tankers is part of an effort to build long-term logistics infrastructure and strengthen India’s shipping and shipbuilding sectors. Through phased procurement and targeted incentives, the plan aims to generate sustained demand for domestic shipyards and reduce reliance on foreign-built vessels.

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