The Government of India is aggregating the cargo demand of public sector undertakings (PSUs) to ensure long-term charters for Indian carriers, aimed at reducing recurring costs of crude oil imports, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Wednesday.
Addressing the India Maritime Week 2025 in Mumbai, Puri said the initiative is part of a broader effort to advance the ship owning and leasing entity model, boost domestic vessel ownership, and establish a Maritime Development Fund to support shipbuilding and maritime infrastructure.
“Oil marketing companies use vessels for crude imports. To reduce recurring costs through ownership, we are aggregating PSU cargo demand for long-term charters by Indian carriers, while also promoting shipbuilding, leasing, and financial assistance models,” Puri said.
Highlighting the synergy between energy and shipping, he emphasized that India’s energy sector urgently requires vessels, while global shipbuilding capacity remains concentrated in China, Japan, and South Korea — with their order books filled for years ahead. “The most sensible course would be to invite them to invest here and start production in India,” he added, stressing the need for long-term planning over the next 10–15 years.
The minister noted that although the oil and gas sector accounts for 28% of India’s trade by volume, only 20% of this cargo is carried by India-flagged and India-owned vessels. “That is why we need to build more ships,” he said.
India currently imports 88% of its crude oil and 51% of its gas needs, with consumption rising from 5 million barrels per day to 5.6 million barrels in just over four years. Puri projected that the figure could soon touch 6 million barrels per day.
He also underlined that India now supplies 12% of the global seafaring workforce and contributes nearly 50% of its $4 trillion GDP from exports and the external sector. “India is anchoring the trade of the 21st century. The India-Middle East-Europe Economic Corridor (IMEC) will connect our ports to Europe and America,” Puri said, adding that the maritime sector is poised to attract $8 trillion in investments by 2047.
Ports, Shipping and Waterways Secretary Vijay Kumar reiterated that the maritime sector remains the lifeline of India’s economy, handling 95% of trade by volume and 70% by value. He said the government is strengthening shipyards, creating shipbuilding clusters in states such as Andhra Pradesh, Odisha, and Gujarat, and bridging financial gaps through the Maritime Development Fund.
Kumar added that the government has already aggregated demand for 180 vessels, with an additional 200 to be acquired by the Shipping Corporation of India (SCI) soon.
“Our shipyards are ready for the new era. This is India’s moment to energize our oceans,” Puri concluded.
