The government aims to provide financial support and modernize ports as part of these initiatives. The announcements were made during a conference hosted by the Ministry of Ports, Shipping & Waterways (MoPSW) and followed the government's earlier plan to develop hydrogen ports in India. The government has prioritized the modernization of the shipping industry, implementing an age limit on ships sailing under the Indian flag or operated by Indian shipowners.
Shri Sarbananda Sonowal, the Union Minister of Ports, Shipping & Waterways, announced five initiatives focusing on green shipping and the digitization of ports. He emphasized the country's commitment to promoting green shipping and enhancing port operations' efficiency. The minister stated that these new efforts would contribute to sustainable development in the maritime industry.
The first initiative involves increasing financial support for companies engaged in building green ships. Currently, the government provides 20 percent financing for newly constructed vessels, gradually reducing it by three percent each year. However, for green vessels, the government plans to increase the support to 30 percent of the total project cost. This move aims to incentivize shipowners to adopt alternative fuels.
Furthermore, the government announced the inclusion of vessels for the offshore wind industry in the subsidy program. The Ship Building Financial Assistance program, which provides assistance for specialized vessels built in India, now covers wind turbine installation vessels, semi-submersible heavy lift vessels for the wind sector, and service and maintenance vessels. India aims to expedite the development of its offshore wind power industry, with the government targeting the first projects to be operational by 2026.
To reduce port emissions and achieve sustainability goals, the government introduced the Green Tug Transition Program. The program's objective is to introduce hybrid tugs by 2025, with a goal of converting at least half of all tugs to green operations by 2030. In line with this, the Ministry of Ports, Shipping & Waterways will provide two hybrid hydrogen-fueled tugs to each of the government-owned ports, including Jawaharlal Nehru Port, VO Chidambaranar Port, Paradip Port, and Deendayal Port.
Port modernization remains a top priority for the MoPSW. The minister highlighted the significant improvements in port efficiency achieved through the modernization program. Over the past eight years, 90 percent of India's ports have completed their updates. The next step involves transforming Jawaharlal Nehru Port and VO Chidambaranar Port into smart ports by the following year. Additionally, a unified portal will be created to facilitate and monitor river and sea cruises.