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Centre to Fund 30% of Nation’s Green Shipping Projects

The Ministry of Ports, Shipping, and Waterways (MoPSW) announced on Monday that it will contribute nearly a third of the financial support for green shipping projects in the nation. This announcement comes after a series of actions to speed up the green transition of Indian shipping.
For all vessels manufactured by the industry, the ministry contributes 20% of cash (with a 3% reduction each year) under the Center’s financial aid for the shipbuilding program. This will now be increased to 30% of the project cost for green shipping to encourage the building of ships using alternative fuels.

The main goal, according to the statement, is to inform the shipbuilding industry that green ships will be given priority.

“We just have a general understanding of the policy because the announcement was just made. We have not yet finalized the entire policy. The small text will address things like the annual reduction, fuel types covered by the policy, etc., according to a senior government official who participated in the discussions.

The representative made it clear that, at least initially, the green finance policy will only apply to ships and not to supporting infrastructure.
It wasn’t immediately clear whether the ministry will use the leftover money from the current Rs 4,000 crore shipbuilding assistance initiative, or if a new fund would be established specifically for this program.
In a meeting presided over by Union Minister Sarbananda Sonowal, MoPSW’s annual chintan shivir, the decision was made. The measure is intended to kickstart India’s shipbuilding industry, according to the ministry.

According to the ministry’s response to a question in Parliament, only 6% of the total amount for shipbuilding assistance has been utilized up to this point, or Rs 241 crore. The operating phase of the project expires in three years.

Additionally, the ministry agreed to quicken the Green Tug Transition Programme. The purchase of two green tugboats would be made by four state-owned ports: Jawaharlal Nehru Port (Navi Mumbai), VO Chidambaranar Port (Tuticorin), Paradip Port (Paradip in the Jagatsinghpur region of Odisha), and Deendayal Port (Kandla).
Over the upcoming fiscal year, Deendayal Port and VO Chidambaranar Port will both be transformed into green hydrogen hubs. A single window system will also be implemented to track river and sea cruises.

The ministry cited Sonowal as saying he would assess the progress towards these goals in a mid-year chintan within a few months and warned that harsh action may be taken if the project’s completion was delayed.

Along with launching the Green Ports Policy earlier this month, the Centre also electrified 50% of all 12 of its major ports, intending to reach 90% by 2047. Under this policy, ships utilising cleaner fuel and vessels may be given priority berthing.

Source: Business Standard

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