The government may give out grants or other fiscal sops to companies willing to convert diesel-run marine vessels into green ships powered by methanol, as it strives to reduce marine pollution and meet its international obligations.
The NITI Aayog is in a discussion with the shipping ministry to find out ways through which the government can support companies at the development stage as well as in conversion of diesel engines to methanol, a senior government official told ET.
“The government is in talks with the interested parties and will soon firm up the plan to incentivise the companies willing to undertake conversion of diesel vessels into methanol,” the official said.
Internal estimates by the Aayog show that the development cost for a 100% methanol engine would be INR 20 crore to INR 50 crore while the conversion cost per vehicle will be INR 30-40 lakh, and the entire process could take up to one-and-a-half years for roll out of green vessels.
The plan is to convert roll on and roll off vessels carrying wheeled cargo into methanol while 500 barges (flat-bottomed inland waterway vessels) will be converted to run on 100% methanol, thereby replacing heavy oil or bunker oil. “All this will result in a massive reduction of pollutants into our seas and rivers,” the official said.
The Aayog is of the view that the International Maritime Organisations’ regulations on sulphur particulates have made it mandatory for India‘s marine sector to switch to a clean fuel. The regulations have reduced the global upper limit on the sulphur content of ship fuel oil to 0.50% from 3.50% with effect from January 2020.
India is committed to meet Sustainable Development Goal (SDG) 14, which focuses on life below water. This goal has 10 targets to be achieved by 2030.
