30% Subsidy for Sustainable Shipping Construction
The Indian government has introduced a series of measures aimed at promoting the adoption of environmentally friendly technology in the shipping sector. These initiatives include offering financial assistance and focusing on upgrading ports. The government’s announcement was made during a two-day conference organized by the Ministry of Ports, Shipping & Waterways (MoPSW) following their earlier plan to develop hydrogen ports in India.
Earlier this year, the government prioritized the modernization of the shipping industry by imposing an age limit on ships sailing under the Indian flag or owned by Indian shipowners.
30% Subsidy for Sustainable Shipping Construction: Key Points
- During the conference, Union Minister of Ports, Shipping & Waterways Shri Sarbananda Sonowal unveiled five initiatives that concentrate on green shipping and the digitization of ports.
- He stressed the government’s commitment to promoting environmentally friendly shipping practices and enhancing port efficiency. These new efforts aim to foster sustainable development within the maritime sector.
- As part of the first initiative, the government plans to increase financial support for companies engaged in constructing eco-friendly ships.
- Currently, the government provides 20 percent financing, decreasing by three percent annually, for newly built vessels.
- However, for green ships, the government intends to raise the support to 30 percent of the overall project cost.
- This move is expected to incentivize shipowners to adopt alternative fuels and technologies.
- The government has recently made an announcement regarding the inclusion of offshore wind industry vessels in the subsidy program.
- A total of 21 shipyards are registered in the Ship Building Financial Assistance program, which offers support for specialized vessels manufactured within the country.
The program will now extend its eligibility to wind turbine installation vessels, semi-submersible heavy lift vessels for the wind sector, and service and maintenance vessels. This move aligns with India’s objective of expediting the development of its offshore wind power industry, with the aim of initiating the first projects by 2026.
Green Tug Transition Program
In addition, the government has introduced the Green Tug Transition Program, which aims to introduce hybrid tugs by 2025. By 2030, the government intends for at least half of all tugs to operate using green technologies. This initiative will contribute to the sustainability goals by reducing emissions in ports.
To further incentivize the adoption of these new technologies and serve as a model for their implementation, the National Ports and Shipping Wing (NoPSW) has announced the provision of two hybrid hydrogen-fueled tugs to each of the four government-owned ports. This includes Jawaharlal Nehru Port, VO Chidambaranar Port, Paradip Port, and Deendayal Port.