India plans massive $10 billion purchase of ‘over 100 Make in India’ crude oil tankers — a bold move aimed at enhancing the country’s energy security and reducing reliance on foreign-owned shipping vessels. This long-term plan will not only strengthen India’s crude oil transportation capabilities but also boost local shipbuilding under the Make in India initiative.
Currently, most crude carriers used by Indian state-owned oil companies are either aged or leased from international firms. In response, the Indian government, through the Ministry of Petroleum and the Ministry of Shipping, has decided to invest approximately ₹85,000 crore ($10 billion) to build and acquire 112 crude oil tankers, all manufactured in India.
Why is India Investing in Indigenous Crude Oil Tankers?
At present, only 5% of India’s crude oil shipping fleet comprises vessels made in India. With this new strategy, the government aims to increase that number to 7% by 2030 and 69% by 2047 — the year India envisions becoming a fully developed nation.
This initiative is not just about ownership but also about strategic control. By owning a larger share of the crude transport fleet, India can better manage costs, logistics, and energy safety in times of global uncertainty.
Phase-wise Implementation
The procurement will unfold in phases. In the first phase, India plans to acquire 79 ships, including 30 medium-range crude carriers. The initial tender for 10 ships is expected to be issued by the end of May 2025.
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The government has mandated that only tankers built locally — even in collaboration with foreign players — will be eligible for contracts, ensuring a strong focus on domestic manufacturing.
India’s Refining Expansion Driving the Demand
Despite global trends moving away from fossil fuels, India’s demand for petroleum is rising, both for domestic consumption and export. The country plans to ramp up its refining capacity from the current 250 million tonnes to 450 million tonnes annually by 2030.
This expansion necessitates a robust fleet of oil tankers, especially when India is the third-largest crude oil importer in the world.
Key Highlights at a Glance
| Detail | Information |
|---|---|
| Total Investment | ₹85,000 crore (~$10 billion) |
| Total Tankers Planned | 112 crude oil tankers |
| Target Completion Year | By 2040 |
| Phase 1 Order | 79 ships (30 medium-range) |
| First Tender Timeline | Expected May 2025 |
| Current India-Built Tankers | Only 5% of total fleet |
| Goal by 2030 | 7% India-built tankers |
| Goal by 2047 | 69% India-built tankers |
| Refining Capacity Expansion | From 250 MT to 450 MT by 2030 |
Make in India Crude Oil Tankers: Strategic and Economic Benefits
This $10 billion investment in crude oil tankers is not just a commercial decision — it’s a strategic one. Indigenous tankers will reduce India’s dependency on foreign shipping, cut long-term costs, and provide better control over the supply chain.
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Additionally, building these ships in India will create thousands of jobs, drive industrial growth, and foster technological collaborations with global shipbuilders. It also aligns with India’s ambition to become a self-reliant maritime power.
Conclusion
India’s plan to build and acquire over 100 Make in India crude oil tankers marks a significant milestone in its energy and industrial policy. With this forward-looking step, the country is not only securing its fuel transport infrastructure but also strengthening its position as a key player in the global energy landscape. If executed as planned, this initiative will be a game-changer for India’s maritime, defense, and economic future.
