Ten Aframax oil tankers in pipeline for Make in India initiative

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Recently IOCL ( Indian Oil Corporation Limited) has planned to order 10 medium size oil tanker ships to an Indian Company which will be made in a domestic shipyard expected to be Cochin Shipyard.

It will be joint venture between IOCL and SCI (Shipping Corporation of India)

The vessel capacity would be around 80k – 120K MT deadweight, with 10 Aframax-class crude oil tankers  and the cost would be around 600 million USD  

A bigger joint venture is being formed between SCI and BPCL, IOCL and HPCL for tankers manufacturing and chartering on long term basis.

Need for this joint venture –

• India is world’s third largest crude oil importer and its major share of imports is for crude oil. Thus India needs a Supply Chain security in Energy sector, recently there has been lot of global issues on shadow fleet blacklisting.

• This will reduce foreign exchange outflow.

• It will give boost to Make in India programs where Indian government has proposed a marine development fund of 25,000 crore Indian Rupees which would approx. 3 billion USD.

• Also through this, the global ship builders will also partner the process with Indian yards. 

In long term the requirement will increase to total 120+ crude oil  carriers till 2040.