What's Happening?
The Shipping Corporation of India Limited (SCI) is planning to build medium-range crude oil vessels to reduce India's reliance on foreign ships for oil imports. Binesh Kumar Tyagi, the Chairman and Managing Director of SCI, announced that the government estimates a need for 112 domestic crude oil vessels in the future. This initiative is part of a broader strategy to achieve self-reliance in oil imports. The SCI is set to invite tenders for constructing these vessels in the coming weeks. This move aligns with India's goal to save approximately ₹6 lakh crore annually, which is currently spent on hiring foreign ships for oil transportation. The announcement was made during the operation of the very large gas container (VLGC) Shivalik at the Visakhapatnam Port Authority’s LPG Terminal.
Why It's Important?
The development is significant for India's energy sector as it aims to enhance the country's self-sufficiency in oil transportation. By building domestic vessels, India can reduce its dependency on foreign shipping services, which currently account for a substantial portion of the country's oil import costs. This initiative supports the Indian government's broader economic strategy to bolster domestic industries and reduce foreign expenditure. The move could also stimulate the local shipbuilding industry, creating jobs and fostering technological advancements in maritime construction. Additionally, it aligns with Prime Minister Narendra Modi's vision of strengthening India's maritime capabilities.
What's Next?
The SCI's plan to invite tenders for building crude oil vessels is expected to progress in the coming weeks. This will likely involve collaborations with domestic and international shipbuilders to meet the technical and capacity requirements. The Indian government may also introduce supportive policies or incentives to facilitate the construction and operation of these vessels. Stakeholders in the maritime and energy sectors will be closely monitoring these developments, as they could influence future investments and operational strategies. The success of this initiative could set a precedent for similar projects aimed at enhancing India's self-reliance in other critical sectors.
