India Eyes South Korean Shipyards for Local Fleet

India is in advanced talks with leading South Korean shipbuilders, including HD Hyundai, Samsung Heavy Industries, and Hanwha Ocean, to establish a significant shipbuilding facility within India. This strategic collaboration, involving the Shipping Corp. of India and state-owned oil refiners, is poised to significantly bolster the nation's maritime capabilities and reduce its reliance on foreign-flagged vessels.

The proposed facility, potentially located in Andhra Pradesh, represents a substantial investment ranging from ₹1,500 crore to ₹15,000 crore. This initiative stems from a joint venture decision made by four state-run companies planning to acquire approximately 112 crude and gas carriers over the next decade. The assured demand from these entities aims to make the investment financially viable for the South Korean partners.

This move is crucial for India's energy security, as the country currently charters foreign vessels for its vast energy imports. Establishing an indigenous fleet will provide greater control over supply chains, especially during global turmoil. Experts highlight that while operational costs may not differ significantly from chartering, owning vessels offers crucial flexibility and supports the national objective of becoming a global shipbuilding hub.