India to Invest ₹15,000 Crore in Green Maritime Transition for Cleaner, Safer Waterways
The Indian government is planning a ₹15,000 crore financial support scheme to promote green energy in the maritime sector. This scheme, similar to the FAME initiative for green automobiles, aims to convert diesel-powered vessels, ferries, and tugboats to cleaner fuels like LNG, CNG, electricity, green hydrogen, and green methanol. The Inland Waterway Development Council (IWDC) is working on finalizing the scheme, which is expected to launch after approval from the finance ministry.
Currently, diesel is the main fuel for vessels on inland waterways and some coastal routes. The shipping ministry has estimated the financial support needed for this green transition.
The government plans to use the Viability Gap Funding (VGF) model, which provides partial government grants to make large public-private partnership projects commercially viable. VGF support can cover up to 20% of the total project cost, with an additional 20% potentially provided by the central ministry.
Pushpank Kaushik, CEO of Jassper Shipping, believes the VGF will make green projects more attractive to private investors. The shipping ministry’s overall plan includes using renewable energy, reducing emissions, optimizing water usage, improving waste management, and cutting carbon emissions by 30% by 2030 and 70% by 2047.
India has around 10,000 inland water transport vessels, with numbers increasing yearly as new navigation routes are added. The ministry has identified 25 river systems for developing inland water transportation facilities.
The new green transition proposal extends the Harit Sagar plan, which encourages ports to reduce carbon emissions and increase green areas. Targets include over 50% electrification of port vehicles and equipment by 2030, rising to 90% by 2047, and significant increases in renewable energy use at ports.
In addition to these measures, ports will need to set up LNG bunkering stations by 2030 and EV charging stations by 2025. The government aims to boost domestic maritime transport and make India a leader in sustainable shipbuilding.
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