The Indian government is gearing up to invest a whopping ₹15,000 crore in a financial support scheme aimed at promoting green energy in the maritime sector. This initiative, modeled after the FAME program for green automobiles, seeks to transition diesel-powered vessels, ferries, and tugboats to cleaner fuels such as LNG, CNG, electricity, green hydrogen, and green methanol. The Inland Waterway Development Council (IWDC) is in the final stages of formalizing the scheme, pending approval from the finance ministry.
Currently, diesel remains the primary fuel for vessels operating on inland waterways and certain coastal routes. The shipping ministry has outlined the financial support required to facilitate this green transition. The government plans to employ the Viability Gap Funding (VGF) model, offering partial government grants to make large public-private partnership projects financially viable.
Pushpank Kaushik, CEO of Jassper Shipping, anticipates that the VGF mechanism will enhance the attractiveness of green projects to private investors. The shipping ministry’s comprehensive strategy includes leveraging renewable energy, reducing emissions, optimizing water usage, enhancing waste management, and slashing carbon emissions by 30% by 2030 and 70% by 2047. India boasts approximately 10,000 inland water transport vessels, with numbers on the rise annually due to the addition of new navigation routes. The ministry has identified 25 river systems for the development of inland water transportation facilities.
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