India's Green Shipbuilding Revolution: Government's Push for Sustainable Practices
Key Ideas
  • Indian government introduces financial incentives under the Shipbuilding Financial Assistance Policy (SBFAP) to promote eco-friendly shipbuilding.
  • Steps taken include encouraging local shipbuilding through Make in India initiative, giving infrastructure status to shipyards, and providing subsidies to Indian shipping companies.
  • Initiatives like Green Tug Transition Programme (GTTP) and Harit Nauka guidelines aim to reduce carbon emissions and promote sustainability in shipping.
  • By supporting green practices and offering financial aid, India aims to boost its shipbuilding industry, meet domestic demands, and compete globally.
The Indian government, through initiatives led by Union Minister Sarbananda Sonowal, is actively promoting sustainable practices in the domestic shipbuilding industry. With a current fleet of 1,552 vessels, the government is incentivizing the construction of eco-friendly ships by offering financial support under the Shipbuilding Financial Assistance Policy (SBFAP). Specialized vessels using green fuels like methanol, ammonia, or hydrogen fuel cells can receive up to 30% financial assistance. Additionally, vessels with electric or hybrid propulsion systems are eligible for 20% assistance. The government is supporting local shipbuilding by making it mandatory to purchase ships costing less than ₹200 crore from Indian shipyards. Indian shipyards have been granted infrastructure status, enabling them to access cheaper loans and enhancing their competitiveness. Indian-built and Indian-flagged ships are prioritized in tenders and charters, giving local companies an advantage through the 'Right of First Refusal' system. To further encourage sustainable practices, the government has introduced initiatives like the Green Tug Transition Programme (GTTP) and Harit Nauka guidelines to promote eco-friendly technologies in vessels. Through these efforts, India aims to reduce carbon emissions and ensure the sustainability of its shipping industry. By supporting green technology and providing financial aid, the government intends to bolster the shipbuilding sector, meet local demands efficiently, and establish a strong presence in the global market. These policies not only enhance India's self-reliance in shipbuilding but also position the country as a significant player in the international maritime industry.
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