India Set to Invest \$600 Million in Crude Tankers
India’s oil giants now want their ships homegrown.
India’s government-owned refining companies are preparing to spend approximately *\$600 million* on a fleet of crude oil tankers built for domestic operations, signaling a major move toward energy transport independence. This purchase forms part of a broader plan to manufacture more than 100 vessels in India under the *Make in India* vision, a strategy valued at nearly *\$10 billion* and aimed at strengthening the country’s control over its maritime logistics.
In recent years, leading oil refiners such as *Indian Oil Corporation (IOC), **Bharat Petroleum Corporation Ltd (BPCL), and **Hindustan Petroleum Corporation Ltd (HPCL)* have largely depended on foreign-leased tankers. These arrangements have left Indian firms vulnerable to external cost volatility and restrictions imposed by international sanctions. To counter this reliance, Indian ministries overseeing oil and shipping are now actively working on a new direction—ownership of key transportation infrastructure.
A central part of this shift is a proposed joint venture between Indian Oil and the *Shipping Corporation of India, which would focus on building large-scale crude carriers within the country. This would help reduce long-term shipping expenses while boosting local shipbuilding capabilities. The idea reflects the Indian government’s **Aatmanirbhar Bharat (Self-Reliant India)* campaign and seeks to turn the tide for a domestic shipbuilding industry that currently captures less than 1% of the global market.
In the immediate future, the plan is to place orders worth \$600 million with Indian shipyards to construct vessels for the exclusive use of state-run refineries. These tankers would replace expensive foreign-leased options and help standardize costs while improving logistical control.
India’s renewed focus on domestic production is largely driven by increasing concerns over the global oil supply chain’s unpredictability. By owning and operating its own *Very Large Crude Carriers (VLCCs)*, India would gain greater flexibility in transporting oil, reduce dependence on outside entities, and shield its operations from international shipping disruptions.
Experts, however, point out that the process of setting up infrastructure to build these massive ships will take time. It will require significant capital investment, skilled workers, advanced engineering expertise, and purpose-built shipyards. Until then, public sector refiners may continue to hire foreign vessels, though they might opt for longer-term leases to secure better deals and more consistent pricing.
If successful, this strategy could help India achieve multiple goals at once: reinforcing energy logistics autonomy, boosting indigenous manufacturing, cutting operational expenses, and stimulating related sectors such as steel, engine manufacturing, and port services. It also presents an opportunity for India to establish a presence in a global shipbuilding market currently ruled by nations like South Korea, China, and Japan.
With the right partnerships and policy support, this initiative could become a cornerstone of India’s industrial policy. Not only will it make Indian refiners more self-sufficient, but it will also turn the country into a more competitive player in the oil transportation and maritime manufacturing spaces.
Summary
This move aligns with the Make in India initiative and aims to reduce foreign reliance, enhance energy transport independence, and develop a strong local shipbuilding industry for long-term strategic gains.
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