Govt plans to add 100 new ships to Indian merchant fleet over next 5 years
Foundation stone has been laid for the Rs.2,300 crore port-based e-methanol plant at Deendayal Port Authority (DPA) in Kandla on 26 Sept, a major step toward for making India a green energy exporter.
The 150-tonne-per-day plant will use renewable power, water and biogenic CO2 to produce e-methanol, a green fuel that will enable cleaner shipping, and supply it to vessels plying on the Asia-Europe International Trade Corridor, one of the world’s busiest trade routes, the Ministry of Ports, Shipping and Waterways said in a release.
It will be installed in phases, as scalable modules. Phase I of the project will add 50 tonnes per day of capacity at an investment of Rs.1,200 crore, targeted for completion by January 2027, followed by Phase II, which will add a further 100 tonnes per day at an investment of Rs.1,100 crore, targeted for March 2027, taking the total investment to Rs.2,300 crore.
The capital contribution between the two partners stands at a ratio of 76:24 between DPA and APCL. DPA’s contribution to the project includes equity capital of Rs.567.32 crore, 75 acres of land, desalinated water, and renewable energy in the form of green hydrogen. It shall be amongst the largest e-methanol production facilities in India and shall create more than 3,500 direct and indirect jobs. It shall stimulate the complete green energy value chain in and around Kandla, including transportation, storage, supply and other associated ancillaries involved in production of green molecules.
“The project positions India as an exporter of green fuel to global shipping. The plant will position India as a global leader in the production and supply of green fuel, and will produce green methanol at a much more competitive rate compared to other global producers, just USD750 per tonne, against a global rate of USD1,300 per tonne,” the Ministry said. “The project supports India’s commitment to reach Net Zero emissions by 2070.”
The government plans to add 100 new ships to the country’s merchant fleet over the next five years and aims to make India one of the world’s top five ship-owning nations by 2047. Global shipping major Maersk has also begun ordering containers manufactured in India. As part of Deendayal Port Authority’s wider mega port push, the DPA-Cochin Shipyard Limited (CSL) shipbuilding project at Vadinar, worth Rs.1,520 crore, is also underway, alongside a proposed greenfield shipbuilding and repair cluster at Kuchhadi, Porbandar, which has received in-principle approval.
Gujarat Chief Minister Bhupendra Patel, Minister of Ports, Shipping and Waterways (MoPSW) Sarbananda Sonowal and Assam’s Chief Minister Dr Himanta Biswa Sarma laid the foundation stone for the country’s first plant, a joint initiative of Deendayal Port Authority (DPA) and Namrup-based Assam Petro-Chemicals Ltd (APCL).
“India is growing faster and greener than ever, and Gujarat is proud to lead that journey,” Bhupendra Patel said. “Kutch and the long coastline of Gujarat will now power the world’s ships through Kandla. This plant turns our renewable strength into an export and makes Gujarat’s coast a gateway for India’s green energy to the world.”
“Just as India is now building its own ships and containers, it will soon make the clean fuel that powers global trade. In the years ahead, Kandla will become a green-fuel hub on the Singapore–Rotterdam route, and this plant is a model for every major port in the country. It will open skilled careers for our youth and carry India firmly toward net zero by 2070 and in achieving the goals of VIKSIT BHARAT by 2047,” Minister Sonowal said at a stone laying ceremony.
Dr Himanta Biswa Sarma added, “Blessed with the mighty Brahmaputra, abundant sunshine and vast hydropower potential, Assam is ready to become a green energy powerhouse. Today, an Assam company carries that strength from Namrup to Kandla, proving that the Northeast will power India’s clean energy future.” fiinews.com
