Indian government pays 30% subsidy for development of environmentally friendly shipping

India sustainable shipping
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The Indian government has announced a range of initiatives aimed at promoting green technologies in the shipping industry, including increased financial support and port modernisation. The ministry of ports, shipping and waterways (MoPSW) indicated its focus on sustainable port development in May when it announced plans to develop hydrogen ports in the country. During a recent two-day conference hosted by MoPSW, the Union Minister for Ports, Shipping and Waterways, Shri Sarbananda Sonowal, revealed five initiatives designed to encourage the industry’s adoption of environmentally friendly practices. These included increasing financial support for companies constructing green ships, reducing port emissions by introducing hybrid tugs and improving the efficiency of ports.

Under the introduction of the government’s Green Tug Transition Program, hybrid tugs are expected to be in operation by 2025 and, by 2030, the government aims for at least half of all tugboats to be converted to environmentally friendly operation. To encourage uptake, MoPSW will provide two hydrogen-powered hybrid tugs for each of the four state-owned ports in India – at Jawaharlal Nehru Port, VO Chidambaranar Port, Paradip Port and Deendayal Port. US Maritime Administrator, Lucinda Lessley, has predicted that hybrid-electric propulsion in the shipping industry will increase rapidly in the near future as the necessary technologies become increasingly efficient and the power from batteries becomes more cost-effective.

MoPSW reports that during the conference, discussions focused on standardising cargo handling and improving port management. MoPSW praised the success of port modernisation in India, revealing that 90% of the country’s ports have been modernised over the past eight years. Jawaharlal Nehru Port and VO Chidambaranar Port will be the next ports to become smart ports as part of the modernisation programme. Additionally, a single portal will be created to facilitate and monitor river and sea cruises.

India has set ambitious targets to make green, hydrogen-based fuels available in 12 of its ports by 2030, followed by green hydrogen and green ammonia bunkering capacity in all ports by 2035. The ministry will review progress on the initiatives mid-year, with an emphasis on completing the projects for maximum impact on sustainable maritime development.

Tags: India,green,shipbuilding,subsidy,digitization,ports


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