India plans to set up a new shipping
company to expand its fleet by at least 1,000 ships in the next decade, as Asia's third-largest economy seeks a bigger
chunk of revenue from surging trade, two government officials said.
The South Asian nation is spending
billions of dollars to refurbish infrastructure in its race to become a
world-class manufacturer with Prime Minister Narendra Modi, who won a third
term this week, aiming for it to be a developed nation by 2047.
The yet-to-be-named firm will be jointly owned by
state-run companies in the oil, gas and fertiliser industries, which would provide it with
business, along with the state-run Shipping Corp of India and foreign
companies.
India's oil and shipping ministries
did not respond to requests for comment.
The aim is to reduce freight outgoings to foreign
firms by at least a third by 2047, said the sources, who sought anonymity as they
were not authorised to speak to the media.
"Current estimates show freight
costs will rise to $400 billion as we boost our exports and imports by
2047," said one of the sources, who has direct knowledge of the matter.
Indian companies paid freight costs
of $85 billion in the financial year 2019/20, of which $75 billion was paid for
use of foreign vessels, the source added.
The turn to foreign carriers comes as
India's shipping fleet has not kept pace with its surge in trade, including
imports of energy and exports of refined oil products.
India has a fleet of about 1,500
large vessels including tankers, gas carriers, container ships and dry bulk
carriers, the sources said.
In January India's oil and shipping
ministries agreed that all state-run oil companies and the planned company work
together, a government document seen by Reuters showed. They would draw on the
expertise of the Shipping Corp of India in "tanker acquisition and
ownership, operations and other areas of shipping", it added.