The Business Bytes
NEW DELHI, APRIL 26, 2024 (TBB BUREAU): The Ministry of Ports, Shipping and Waterways (MoPSW) is actively pursuing the establishment of a dedicated Maritime Development Fund, similar to sectoral financial institutions such as Power Finance Corporation, REC, and IRFC, confirmed a senior ministry official.
R Lakshmanan, Joint Secretary of MoPSW, stated that the proposed fund aims to address the unique and substantial funding requirements of the maritime sector. It will facilitate the implementation of specific initiatives including shipbuilding, decarbonisation, adoption of green energy, technology innovation, and manpower training and development.
The establishment of this fund is deemed crucial as India’s shipping sector currently lacks sufficient access to finance sources such as bank credit and foreign investment, despite its pivotal role in supporting the country’s projected trade and economic expansion.
In collaboration with Cochin Shipyard Limited (CSL) and the Inland Waterways Authority of India (IWAI), the Government of India organized a two-day conference in Kochi from April 23rd to 24th on ‘Challenges and Prospective Solutions in Inland Waterways and Shipbuilding.’ The conference addressed key challenges including the non-availability of long-term funding crucial for sustainable growth and lower interest rates.
Speaking on Friday, Lakshmanan highlighted the success of the conference in facilitating discussions on India’s priorities, including the green transition of inland waterways, the establishment of a dedicated Maritime Development Fund, and the promotion of domestic shipbuilding. He noted that such meetings are part of the ministry’s efforts to identify and address key challenges faced by maritime stakeholders in achieving targets outlined in the Maritime Amrit Kaal Vision 2047.
MoPSW is spearheading decarbonisation efforts in the Inland Waterways sector through IWAI and CSL by deploying Green Hydrogen Fuel Cell Inland Vessels in alignment with the ministry’s Harit Nauka Guidelines. Varanasi has been selected as the pilot location for immediate deployment on NW-1, with expansion plans informed by pilot learnings. Discussions are underway with potential players for facilities such as bunkering.
Methanol is also being considered as a key green fuel for EXIM Vessels globally, as evidenced by Maersk’s recent deployment of Methanol Powered Ships. It has been suggested to explore mechanisms for the indigenous development of methanol marine engines in the country as a progressive step towards the green transition of inland vessels.
