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India is moving ahead with green shipping agenda as it looks to leverage port infrastructure as green hydrogen hubs, and push for financial incentives and sops to support sustainable shipbuilding activities, said Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways.
Bharat Global Ports Consortium will push India’s strategic investment into overseas port infra facilities; while the Bharat Container Shipping Line will acquire and lease container vessels. Both initiatives are progressing well and are on track, he says.
MoPSW has been trying to secure green hydrogen contracts for various ports and set up the required infrastructure. How has this fared?Â
The Ministry has identified three major ports to be developed as green hydrogen hubs – Deendayal Port in Gujarat, Paradip Port in Odisha, and VO Chidambaranar Port in Tamil Nadu. The private sector has demonstrated significant participation in these hydrogen hubs for green hydrogen projects. This is evidenced by the leasing of 3,400 acres of land by Deendayal Port Authority (DPA) and 501 acres of land by VO Chidambaranar Port Authority (VOCPA) to private entities.
Common infrastructure for green hydrogen projects – majorly, common electrical infrastructure and desalination plants – will be provided by the ports.
At Deendayal Port, a 1-MW capacity electrolyser green hydrogen pilot project is under construction. It is slated for completion by July 2025. The facility will be scaled up to 10 MW.
At VOC Port, a hydrogen generation project has been initiated on a pilot basis. Bunkering and re-fuelling facilities are being developed for green methanol-making, for which the Centre has approved financial assistance.
Are any special sops being proposed for green shipbuilding activities?
Under the Shipbuilding Financial Assistance Policy (SBFAP) guidelines, there are provisions for wind farm installation vessels and construction of sophisticated dredgers as specialised vessels, which are eligible to get higher financial assistance, over ₹40 crore, which is the upper limit for non-specialised vessels.
There will be a financial assistance of 30 per cent for vessels, whose main propulsion is achieved by means of green fuels such as methanol/ammonia/hydrogen fuel cells. Another financial assistance of 20 per cent for vessels with electric means of propulsion or vessels, fitted with hybrid propulsion system, has also been proposed. In terms of funds, ₹4,000 crore have been earmarked, under SBFAP, between April 1, 2016 and March 31, 2026. Of this, ₹385.16 crore has been utilised till date.
Secondly, the Ministry has launched the Green Tug Transition Programme (GTTP), which aims to reduce carbon emissions and minimise its environmental impact by encouraging adoption of sustainable tugboat operations.
Thirdly, the Ministry has initiated the proposal to extend and enhance the existing financial assistance policy. Accordingly, for vessels deemed as special vessels or green/hybrid vessels and highly-specialised vessels, the shipbuilding financial assistance scheme (SBFAP 2.0)offers aid of 15 per cent up to ₹100 crore and 25 per cent above ₹100 crore.
Can you explain the concept behind Bharat Global Ports consortium, its need and scope of work?
A consortium of India Ports Global Ltd (IPGL), Indian Port Rail & Ropeway Corporation Ltd (IPRCL), and Sagarmala Development Company Ltd (SDCL), known as the Bharat Global Ports Consortium, will promote, develop, and manage international ports and terminals.
IPGL will lead this consortium, focusing on the promotion, development, management, and operation of port and terminals. This includes overseeing cargo handling, managing facilities and traffic, handling logistics, and collaborating with international ports.
The IPRCL will leverage its experience to provide consultation and assistance with civil and mechanical works that include the development of berths, warehouses, port buildings, rail and road connectivity, and mechanisation of port operations.
The SDCL will be responsible for the financial aspects of the projects. Its role includes formulating financial strategies and offering advice on project financing and execution. We are leveraging it as a non-banking financial company and necessary permissions have been sought from the RBI.
So, the primary scope of the Bharat Global Ports Consortium will involve identifying international port development projects; assessing project feasibility and preparing an indicative list of international opportunities. There are currently no plans for an initial public offering (IPO) of this consortium.
How soon can SDCL become an NBFC?
Application to the Reserve Bank of India for grant of Certificate of Registration (CoR) as a Type II- NBFC (Non Deposits-Investment and Credit Company) was filed on December 20, 2024. The NBFC – Certificate of Registration (CoR) – is likely by June 2025.
What would be the broad contours of the Bharat Container Line?
The Ministry proposed the formation of the Bharat Container Shipping Line (BCSL) under the aegis of the Shipping Corporation of India (SCI). India’s current containerisation rate is under 30 per cent – lower than developed countries – representing a vast growth opportunity.
BCSL is a transformative initiative to build a self-reliant container shipping ecosystem. It enhances trade resilience, reduces foreign dependence, and supports national economic and strategic interests.
The Ministry observed, over 90 per cent of India’s trade by volume depends on maritime transport. And, the BCSL supports national initiatives like Sagarmala for port and shipping infrastructure.
We also found out that the SCI, as the national carrier, currently has only two container vessels (4,400 TEU). Competing globally requires vessels more than 15,000 TEUs (twenty equivalent units), costing at $230 million each, which is beyond SCI’s standalone funding capacity.
The BCSL, as a joint venture, will own these ships and lease them to SCI under long-term bareboat charter agreements, allowing SCI to operate and manage them.
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