Mitsui OSK Lines Establishes Presence in GIFT City and Explores Tanker Construction at L&T Shipyard

Shipping companies have initiated talks with Larsen & Toubro Ltd to build an oil tanker at its Kattupalli shipyard under the Make in India program. The GIFT City is India’s first International Financial Services Center (IFSC) aiming to onshore India-focused businesses globally. MOL plans to open a new office in GIFT City and lease or build ships in India as part of the Make in India initiative.

MOL will first look at leasing ships and then acquire a license to own and operate ships, potentially including Indian-made ships. The ships will sail under foreign flags initially but may be registered under the Indian flag if built locally. MOL plans to start with simple vessels to avoid risks associated with complex vessels like LNG tankers.

The banks are being strict with ship-building schedules, said a shipping consultant, as MOL’s Indian unit operates various types of tankers and could potentially boost the government’s efforts to increase India’s shipping tonnage by owning and operating Indian-flagged ships. This move aligns with the Make in India initiative and aims to attract global fleet owners to the tax haven of IFSC GIFT City.

Source .