Indian Oil Corp has received the government nod to buy one very large ship full of crude oil from the US every month this year as it looks at cheaper alternatives that have emerged due to global supply glut.
The shipping ministry has allowed the country’s largest oil firm to import one parcel or cargo of crude oil from the US every month in foreign ships, said a senior oil ministry official.
India allows import of crude oil only on Indian carriers. As per the policy, Indian shipping lines get the first right of refusal by virtue of they being allowed to match any lowest bidder for transportation of crude oil. Only when they waive their right can the oil firms use a foreign line.
Transporting US crude needs very large crude carriers (VLCCs) and can be done only by foreign shipping lines. And to do that, oil companies have to obtain permission of the shipping ministry. Read more