Latest news with #India-built
&w=3840&q=100)
Business Standard
20-05-2025
- Business
- Business Standard
India to invest $10 billion in homegrown oil tanker fleet by 2040
The purchase order for 10 tankers should come out as early as this month, the people said. Only ships built locally - even if there's foreign collaboration - will be considered for purchase Bloomberg India plans to spend 850 billion rupees ($10 billion) to purchase 112 crude carriers through 2040, people familiar with the matter said, as the world's third-biggest importer of oil seeks to have its own fleet to secure supplies. State-owned oil companies currently operate an aging fleet that's mostly on-charter from global companies and the shipping and petroleum ministries want to change that, said the people, who asked not to be identified citing rules. The plan's first phase involves purchasing 79 ships, of which 30 of them would be medium-range vessels, they said. The purchase order for 10 tankers should come out as early as this month, the people said. Only ships built locally — even if there's foreign collaboration — will be considered for purchase, they said. Despite the global push for transition to cleaner sources of energy, India's crude oil refining capacity is set to expand — to 450 million tons by the end of the decade from about 250 million tons now — on the back of growing domestic and overseas demand for oil products. For a nation that relies on imports for the bulk of its crude oil needs, it's imperative to have sufficient shipping capacity of its own to carry out its energy trade. India targets to raise the share of locally built oil tankers in its fleet to 7% by 2030 from 5% at present, the people said. The idea is to eventually increase it to 69% by 2047 — the deadline the country has set for becoming a developed nation. The shipping and petroleum ministries and the government's Press Information Bureau didn't immediately respond to emailed requests for comments. Prime Minister Narendra Modi's government this year announced a 250 billion-rupee fund to support the country's maritime sector, with one of its goals being to eventually reduce reliance on foreign-built vessels and bolster indigenous shipbuilding capacity. India is also planning to add shipping capacity for transporting coal, fertilizer and steel, the people said. The idea is to replace most of it with India-built ships going ahead. Lacking Scale India's ship building industry is still nascent and lacks scale in the absence of sufficient captive demand for ships, the people said. The economies of scale will follow once global shipbuilding companies come to India and build for the world, they said. While the MT Maharshi Parashuram is the largest India-built oil tanker at 238-meters long and a deadweight tonnage of 93,332 metric tons, it dwarfs in comparison to China's Minsheng Financial Leasing-owned Oceania — a supertanker measuring 380 meters long and boasting a deadweight tonnage of 441,584 metric tons. The Indian government's intent is to provide demand side stimulus for ship building companies, the people said, adding the country is inviting shipbuilders from Japan and South Korea to build ships with the promise of incentives. South Korea's HD Hyundai Heavy Industries Co. is in discussions with India's state-owned Cochin Shipyard Ltd. for a new facility in the southwestern Indian coastal city of Kochi, local media reported. India has also held talks with Korean shipbuilders Samsung Heavy Industries Co. and Japan's Nippon Yusen KK, also known as NYK Line, a local official had said earlier. 'It is a good move from energy security point of view since the dependence on China for a lot of these services is high,' according to Rajiv Jalota, a former chairman of government-owned Mumbai Port Trust. 'The world needs to develop alternatives.'
Mint
07-05-2025
- Automotive
- Mint
India-UK Free Trade Agreement: What does it mean for automotive companies and customers?
At a time when US President Donald Trump's tariffs are creating waves of uncertainty in the global market, many countries are re-evaluating trade barriers. The India-UK Free Trade Agreement comes in at a crucial time, particularly for India's automotive industry, which has more export-worthy products than ever before. According to the FTA, Indian automotive tariffs (which are among the highest in the world) will drop from 100 per cent to 10 per cent. All imports and exports will be subject to a quota on either side; however, no specifics regarding the quota have been shared yet. What is clear is that the deal is expected to give a much-needed boost in terms of investments, allowing Indian automakers to make inroads into the UK and European markets. The deal is likely to make the import of high-end UK-built luxury cars much cheaper. This includes brands like Land Rover, Jaguar, Aston Martin, Bentley, and Rolls-Royce, with the latter exporting its vehicles from its sole manufacturing facility in Goodwood, UK. Jaguar Land Rover India currently assembles the Range Rover Evoque, the Range Rover Velar, and the Discovery Sport in Pune, having recently added the Range Rover and the Range Rover Sport to its list of locally assembled cars. While the local assembly operations are likely to remain unchanged, JLR will be better placed to increase overall capacity, should the demand for these luxury cars increase. While no automotive concern has stated the exact pricing of these cars, post-FTA, India's top-end luxury car market, which is witnessing record y-o-y growth and is among the top 10 global markets for most luxury carmakers in the world, is set to receive a big boost. For instance, if a base Bentley Bentayga, imported as a CBU, currently costs ₹ 4.10 crore, the new tariffs could bring the price to approximately ₹ 2.25 crore (not including registration, road tax, etc). The India-UK FTA also spells good news for Indian automotive manufacturers who will export greater quantities of India-built cars to the UK, including the Maruti Suzuki Vitara and Toyota Urban Cruiser, according to a report in Autocar UK. While the specifics of the quota are still awaited, it's fair to assume that the UK government will put a cap of some kind on the number of India-built cars that can be imported into the UK. For many manufacturers like Tata Motors and Mahindra, a strong fleet of electric vehicles is a tabula rasa of sorts, allowing them to enter new, developed markets without needing the sort of brand equity that comes from decades of manufacturing. 'In the EV world, you don't have to be a brand for 30 years for consumers to accept you,' said Mahindra's Executive Director and CEO of Auto and Farms Sector Rajesh Jejurikar, at a press conference. Both Tata and Mahindra are expected to roll out plans for expanding their footprint in the UK and European markets. TVS Motor Company MD Sudarshan Venu echoed similar sentiments. 'It (the FTA) creates large opportunities for Indian companies like ours to expand further and access new markets. Our British brand Norton will launch later this year and this agreement will help us scale faster and leverage common supply chains' According to ACMA (Automotive Component Manufacturing Association of India), India exported auto parts worth ₹ 1590 crore to the UK and imported parts worth ₹ 1150 crore. As such, the components industry in India is expected to gain from the FTA, with Bharat Forge, Ashok Leyland, Sona Comstar and MRF among the top gainers in this space. As of today, nearly two-thirds of Nifty Auto Index constituents are trading in the green. The FTA is also expected to strengthen the local automotive supply chain in a major way.
