Indian Government To Introduce 30% Financial Support for Green Shipping
Following a series of moves to accelerate the progress of the green transition of the country’s shipping, the Ministry of Ports, Shipping, and Waterways (better known as MoPSW) on Monday declared that it would provide nearly one-third of financial support for all green shipping projects in India.
Under the financial aid for the shipbuilding scheme provided by the Centre, the ministry provides 20% (with a 3% reduction yearly) of funds for vessels constructed by the industry. For green shipping, this will be raised to 30% of the total project cost for incentivizing the building of ships operating on alternative fuels.
The green funding policy will apply only to vessels and not its allied infrastructure.
It was not clarified immediately if there would be a new fund for this scheme or if the ministry would utilize residual funds from the existing Rs 4,000-crore shipbuilding assistance scheme.
The decision was made at MoPSW’s yearly chintan shivir, chaired by India’s Union Minister Sarbananda Sonowal. With this move, the ministry aspires to get the wheels moving for the country’s shipbuilding industry.
Per the ministry’s response to a question in Parliament, Rs 241 crore has been used from the fund for shipbuilding aid — which is 6%. The operational period of the scheme ends in about three years.
The ministry further decided to expedite its Green Tug Transition Program. Four state-owned ports — VO Chidambaranar Port (in Tuticorin), Jawaharlal Nehru Port (in Navi Mumbai), Deendayal Port (in Kandla), and Paradip Port (Paradip in Jagatsinghpur district of Orissa) — will be procuring two green tugboats each.
In the meantime, Deendayal and VO Chidambaranar ports will be restructured as green hydrogen hubs in the next fiscal year. A single window system will also be launched to monitor sea and river cruises.
The ministry quoted Sonowal as saying that he would supervise the progress concerning the targets in a mid-year chintan a few months later and mentioned strict actions would be taken in case of any delay in project completion.
Earlier in the month, the Centre introduced the Green Ports Policy, under which vessels operating on cleaner fuel and vessels can get priority berthing, along with 50% electrification in 12 of the major ports in the centre, which would be enhanced to 90% in 2047.
References: Live Mint, Business Standard
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Marine Insight News Network is a premier source for up-to-date, comprehensive, and insightful coverage of the maritime industry. Dedicated to offering the latest news, trends, and analyses in shipping, marine technology, regulations, and global maritime affairs, Marine Insight News Network prides itself on delivering accurate, engaging, and relevant information.
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