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Tuesday, July 23, 2024

Government likely to support green transition of inland water vessels and tugboats with ₹15,000 crore VGF.

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In Short:

India is developing a VGF scheme to make maritime transportation more environmentally friendly by supporting a shift to greener fuels such as LNG and hydrogen. The plan aims to reduce carbon emission and promote sustainable shipping practices. Additionally, the Harit Sagar plan seeks to increase green spaces at ports and transition to cleaner energy sources like electrification and LNG.

Green Transition in Indian Maritime Segment Underway

The Indian maritime sector is gearing up for a green revolution with the formulation and consideration of various incentives, including the VGF scheme. The Inland Waterway Development Council (IWDC) is working on finalizing this scheme, which will encourage the adoption of green technologies similar to the FAME scheme for automobiles.

Key Features of the VGF Scheme

VGF, or Viability Gap Funding, provides partial government capital grants for large infrastructure projects, making them commercially viable for private investors. This support is crucial for encouraging the use of cleaner fuels such as LNG/CNG, electricity, green hydrogen, and green methanol in the maritime sector.

Push towards Green Technology

Pushpank Kaushik, CEO of Jassper Shipping, emphasizes the importance of transitioning from diesel to greener fuels in vessels. The VGF scheme will play a key role in making these projects attractive for private investors, leading to a more sustainable maritime sector.

Government’s Vision for the Sector

The shipping ministry aims to significantly reduce carbon emissions and promote sustainable practices in the maritime sector. By focusing on renewable energy, optimizing water usage, and reducing emissions per tonne of cargo handled, the ministry is on a mission to de-carbonize the sector by 2030 and beyond.

The Harit Sagar Plan

The Harit Sagar plan, initiated by the shipping ministry, is a comprehensive strategy to reduce carbon emissions and promote green practices at major ports. By increasing green cover, electrifying vehicles and equipment, and retrofitting port crafts with cleaner propulsion technology, the plan aims to create a more sustainable and eco-friendly maritime industry.

With a focus on renewable energy, electrification, and infrastructure development, the Indian maritime sector is poised for a green makeover that will not only enhance environmental sustainability but also drive economic growth.

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