Officials confirm Indian Government program to build 100-ship tanker fleet
The Indian Government plans to build a fleet of more than 100 domestically-produced tankers over the next 15 years to reduce its dependence on foreign-built ships for transporting imported crude oil, officials in New Delhi confirmed recently.
The government has reportedly earmarked INR850 billion (US$10 billion) to build 112 tankers by 2040 at domestic shipyards.
The first phase will involve the construction of 79 ships, 30 of which will be medium-range tankers. Sources said the first 10 tanker orders will be finalised early as this month and will be partly financed through long-term charter agreements.
Under the plan, the government aims to increase the share of domestically produced tankers in the fleet from the current five per cent to seven per cent by 2030. By 2047, this share is expected to rise to 69 per cent.
As the world’s third largest importer of crude oil, India currently relies on international shipowners to transport 90 per cent of its imported crude using foreign vessels. In terms of import structure, crude from Russia has the largest share, followed by Iraq, Saudi Arabia and the UAE.