MOL Looks to India for Shipbuilding Tie-Up

Japan's second-largest shipping company Mitsui O.S.K. Lines wants to tie up with Indian companies to build tankers in India, aiding the South Asian nation's effort to boost local manufacturing, its chief executive, Takeshi Hashimoto said.

New Delhi is modernizing its maritime laws to allow foreign participation in the sector, including ship-building, ports and shipyards, to reduce freight outgoings to foreign firms by at least a third by 2047.

"The Indian government has a strong preference to see the new vessels constructed in India. If possible, we want to be involved in the project," Hashimoto told reporters at the APPEC conference in Singapore on Tuesday.

India's shipping fleet has not kept pace with its surge in trade, including the import of energy and the export of refined oil products.

"We definitely need to work with the local partners and together with strong cooperation with Indian shipyards," Hashimoto said.

India will set up a 250 billion rupees ($2.84 billion) maritime development fund for the long-term financing of the country's shipbuilding and repair industry, the government said in its budget in February.

Shipbuilding is among the industries the government is looking to promote in a multibillion-dollar effort to turn India into a world-class manufacturing nation.

(Reuters)