India is planning to invest $10 billion (approximately 13.67 trillion won) to establish its own fleet of tankers for crude oil supply, raising expectations in the domestic shipbuilding industry. While India aims to build all its ships domestically, it is highly likely that core components including engines will be procured from Korean corporations.
According to the shipbuilding industry on the 27th, the Indian government plans to order 112 oil tankers by 2040 with an investment of $10 billion. This is to improve the low ratio of domestic ships, which stands at around 5%, despite being the third-largest importer of crude oil globally. India plans to increase the percentage of domestic ships to 69% by 2047.
While India is seeking to boost its domestic shipbuilding industry, benefits for Korean corporations are also expected. HD Hyundai Heavy Industries is considering establishing a joint shipyard with Cochin Shipyard Limited, a state-owned shipyard in India, in the port city of Thoothukudi in Tamil Nadu. Samsung Heavy Industries and Hanwha Ocean are also continuing discussions for cooperation following the visit of an Indian shipbuilding delegation, including Deputy Minister AL Lakshmanan, to South Korea last year.
A source in the shipbuilding industry said, "For India, which has relatively inadequate construction capabilities, relying on foreign sources for core components like engines is inevitable to build a large-scale fleet." However, it is expected to take a long time to reach an agreement on investment in local shipyards and technology transfer that India desires.
The domestic shipbuilding industry generates annual sales worth trillions of won from the export of key equipment such as ship engines. HD Hyundai Heavy Industries recorded an export amount of 3.35 trillion won for ship engines last year.
HD Hyundai Marine Engine, which produces diesel engines for small and medium-sized vessels as well as dual fuel engines, exported components worth 158.4 billion won last year. Hanwha Engine, which manufactures and sells ship engines and components, recorded an export amount of 1.11 trillion won last year.