India is set to spend $10 billion (850 billion rupees) to build a fleet of 112 crude oil carriers by 2040, aiming to reduce reliance on foreign ships and secure its energy supply, sources familiar with the plan revealed.

Currently, state-owned oil companies largely operate an aging fleet chartered from global firms, but the shipping and petroleum ministries want to shift to domestically built tankers.

The first phase will include the purchase of 79 vessels, with 30 classified as medium-range tankers.“The purchase order for 10 tankers could be issued as early as this month,” the sources said, emphasizing that only locally built ships, including those built through foreign collaboration, will qualify.

India’s crude refining capacity is projected to grow from 250 million tons currently to 450 million tons by 2030, driven by rising domestic and international demand.

With most of its crude imported, the nation needs sufficient shipping capacity to safely transport energy supplies.The government targets increasing the share of Indian-built oil tankers from 5% today to 7% by 2030 and 69% by 2047 — the year India plans to achieve developed nation status.

Prime Minister Narendra Modi’s administration has already committed 250 billion rupees to boost the maritime sector, aiming to expand indigenous shipbuilding and reduce dependency on foreign vessels.

Rajiv Jalota, former chairman of Mumbai Port Trust, praised the move:“It is a good move from an energy security point of view since the dependence on China for a lot of these services is high.

The world needs to develop alternatives.”India is also inviting shipbuilders from Japan and South Korea, including industry giants like Samsung Heavy Industries and HD Hyundai Heavy Industries, to collaborate with local yards such as Cochin Shipyard Ltd.

Though India’s shipbuilding industry is still developing and lacks scale, officials believe attracting global companies will help build the capacity needed to serve both domestic and international markets.