A Strategic Voyage: India’s Vision to Own and Build 112 Crude Oil Tankers for Energy Security and Industrial Growth

India has embarked on a transformative journey to bolster its energy security and maritime self-reliance through an ambitious plan to construct 112 crude oil tankers domestically. This initiative, with an investment of ₹85,000 crore (approximately $10 billion), is a significant stride under the 'Make in India' campaign, aiming to reduce dependency on foreign-owned vessels for transporting the nation's vital crude oil imports.

(Getty Images) | India Today

Strategic Imperative: Enhancing Energy Security

India's energy landscape is characterized by a heavy reliance on imported crude oil, with over 85% of its requirements met through imports. Alarmingly, more than 95% of this crude oil is transported via foreign-owned ships, exposing the nation to vulnerabilities in its energy supply chain. The state-run Shipping Corporation of India (SCI) and a few private operators manage a limited fleet, predominantly comprising aging, foreign-built tankers that are increasingly uneconomical to operate.

Recognizing these challenges, the Indian government has unveiled a comprehensive plan to construct 112 crude oil tankers domestically. This move is not only aimed at reducing foreign dependency but also at asserting greater control over the transportation of critical energy resources.

Implementation Roadmap: Phased Development

The project is structured to unfold in phases, with the initial order of 10 tankers anticipated shortly. By 2047, coinciding with the centenary of India's independence, the objective is for 69% of the country's crude oil fleet to be both Indian-built and Indian-owned. This aligns with the government's vision of a 'Viksit Bharat' (Developed India), emphasizing strategic autonomy and industrial rejuvenation.

The plan also complements India's expanding refining capacity, projected to grow from 250 million tonnes to 450 million tonnes by 2030. This expansion underscores the urgency of developing a robust, domestically controlled maritime infrastructure to support the nation's energy needs.

Economic and Industrial Impact: Revitalizing Shipbuilding

Beyond energy security, the initiative is poised to invigorate India's shipbuilding industry, generating employment opportunities and fostering technological advancements. By focusing on domestic construction, the plan aims to stimulate local economies, enhance skill development, and position India as a significant player in the global maritime sector.

The emphasis on 'Make in India' ensures that the benefits of this massive investment permeate through various sectors, reinforcing the nation's commitment to self-reliance and sustainable economic growth.

Challenges and Considerations: Navigating Complexities

While the plan is ambitious, it faces several challenges, including the current limited capacity of India's shipbuilding industry and the need for substantial investment in infrastructure and skilled labor. To address these, the government has announced a ₹250 billion fund to support the maritime sector and promote local shipbuilding. Additionally, collaborations with international partners may be explored to enhance technological capabilities and expedite the construction process.

Conclusion: A Bold Step Towards Self-Reliance

India's decision to invest in building a domestic fleet of crude oil tankers is a strategic move towards achieving energy security and industrial self-reliance. By reducing dependence on foreign shipping, bolstering the domestic shipbuilding industry, and creating employment opportunities, this initiative reflects a comprehensive approach to strengthening the nation's economic and strategic position in the global arena.

(With inputs from India Today)