India plans to invest 850 billion Indian rupees to purchase 112 domestically produced crude oil tankers.

Bloomberg reported on May 20 that India plans to invest 850 billion Indian rupees (Rs 85,000 crore, approximately $100 billion) to buy 112 domestically produced crude oil tankers by 2040, aiming to enhance energy security, promote the development of domestic shipbuilding industry, and reduce reliance on foreign shipping.

In the first phase of the plan, it is expected to procure 79 ships. The first batch of 10 orders may be released as early as the end of May 2025. The procurement target is limited to ships built domestically in India (allowing foreign capital cooperation). India plans to increase the proportion of domestically built oil tankers from the current 5% to 7% by 2030 and set a target of reaching 69% by 2047 (the year India aims to become a developed country).

The background for the introduction of this plan includes two factors: firstly, India's crude oil demand is growing and highly dependent on imports. Crude refining capacity is expected to increase from about 250 million tons per year currently to 450 million tons per year by 2030; secondly, India's state-owned oil companies' fleets are aging and mostly leased from international companies, posing supply chain risks. In addition to crude oil, the Modi government has established a fund of 250 billion Indian rupees to support the maritime industry and increase the scale of coal, fertilizer, and steel transportation fleets to promote the full replacement of domestic vessels with existing capacities.

However, India's domestic shipbuilding industry is still in its infancy, lacking sufficient autonomous demand and struggling to form economies of scale. The largest domestically produced oil tanker currently in India, "MT Maharshi Parashuram," has a carrying capacity of only 93,000 deadweight tons.

Based on this, India plans to invite well-known shipbuilders such as Nippon Yusen Kabushiki Kaisha (NYK Line), Hyundai Heavy Industries of South Korea, and Samsung Heavy Industries to set up factories in India in an attempt to introduce technology and capacity. Hyundai Heavy Industries is currently negotiating with India's state-owned Cochin Shipyard Limited.

Original article: https://www.toutiao.com/article/1833037136132105/

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