India plans new shipping venture to tap into expanding trade revenue
PORTS & SHIPPING

India plans new shipping venture to tap into expanding trade revenue

India is planning to establish a new shipping company to increase its fleet by at least 1,000 ships over the next decade, aiming to capture a larger share of revenue from growing trade. The officials mentioned that India, as Asia's third-largest economy, is investing heavily in infrastructure to enhance its manufacturing capabilities, with Prime Minister Narendra Modi envisioning it as a developed nation by 2047.

The yet-to-be-named company will be jointly owned by state-run entities in the oil, gas, and fertilizer sectors, along with the state-owned Shipping Corp of India and foreign firms. Requests for comments from India's oil and shipping ministries went unanswered.

Sources, speaking on condition of anonymity, stated that the goal is to reduce freight expenses to foreign companies by at least one-third by 2047. One of the sources, who is familiar with the matter, mentioned, "Current projections indicate that freight costs could reach $400 billion as exports and imports increase by 2047."

In the financial year 2019/20, Indian companies reportedly paid $85 billion in freight costs, with $75 billion allocated for foreign vessels. This shift towards foreign carriers is attributed to India's shipping fleet not keeping pace with its expanding trade, especially in energy imports and exports of refined oil products.

India currently has around 1,500 large vessels, including tankers, gas carriers, container ships, and dry bulk carriers. In January, India's oil and shipping ministries agreed that all state-run oil firms, along with the planned company, would collaborate. A government document revealed plans to leverage the expertise of the Shipping Corp of India in tanker acquisition, ownership, operations, and other shipping-related areas.

Additionally, on May 16, the two ministries established a joint working group comprising government and industry representatives to formulate a strategic plan, as per the document.

India is planning to establish a new shipping company to increase its fleet by at least 1,000 ships over the next decade, aiming to capture a larger share of revenue from growing trade. The officials mentioned that India, as Asia's third-largest economy, is investing heavily in infrastructure to enhance its manufacturing capabilities, with Prime Minister Narendra Modi envisioning it as a developed nation by 2047. The yet-to-be-named company will be jointly owned by state-run entities in the oil, gas, and fertilizer sectors, along with the state-owned Shipping Corp of India and foreign firms. Requests for comments from India's oil and shipping ministries went unanswered. Sources, speaking on condition of anonymity, stated that the goal is to reduce freight expenses to foreign companies by at least one-third by 2047. One of the sources, who is familiar with the matter, mentioned, Current projections indicate that freight costs could reach $400 billion as exports and imports increase by 2047. In the financial year 2019/20, Indian companies reportedly paid $85 billion in freight costs, with $75 billion allocated for foreign vessels. This shift towards foreign carriers is attributed to India's shipping fleet not keeping pace with its expanding trade, especially in energy imports and exports of refined oil products. India currently has around 1,500 large vessels, including tankers, gas carriers, container ships, and dry bulk carriers. In January, India's oil and shipping ministries agreed that all state-run oil firms, along with the planned company, would collaborate. A government document revealed plans to leverage the expertise of the Shipping Corp of India in tanker acquisition, ownership, operations, and other shipping-related areas. Additionally, on May 16, the two ministries established a joint working group comprising government and industry representatives to formulate a strategic plan, as per the document.

Next Story
Equipment

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Next Story
Infrastructure Energy

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Next Story
Infrastructure Energy

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App