Govt to Offer Subsidies to Build Ships that Employ Offshore Wind Projects

Govt to Offer Subsidies to Build Ships that Employ Offshore Wind Projects

The Indian government will now extend subsidies to build ships establishing offshore wind projects. It is a part of the shipbuilding subsidy scheme, which the government revised to include the manufacture of these vessels. 

The move comes even as the government finally announced a (draft) offshore wind policy and hopes to install the first projects by 2026 or later. Hopes are certainly high that by 2030, the country will add a thriving offshore wind sector to its renewable energy mix.

This initiative has been announced under the Rs 4,000 crore Ship Building Financial Assistance, which will provide financial support of up to 20% of the contract price of the fair price offered to cover Indian shipyards for every specialized vessel constructed.

Twenty-one shipyards so far have registered for the scheme, such as L&T Shipbuilding, and Goa Shipyard Ltd.

Wind turbine installation vessels, self-propelled semi-submersible heavy life and heavy transport vehicles will now be covered under the scheme’s ambit. It will also extend to wind farm service and maintenance vessels.

The initiative is important, given the premium placed on offshore wind development in India.

Green energy ambitions are being proactively fuelled in India’s shipping industry. In November 2022, the first National Center of Excellence for Green Port and Shipping (NCoEGPS) was unveiled by the Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal. It is said to be a significant effort on the part of the Ministry of Ports and Shipping to provide greener solutions.

Three of India’s ports will be developed as hydrogen hubs in a similar initiative by 2030. These include Paradip Port, Deendayal Port and VO Chidambaranar Port. At present, of the ten significant projects being undertaken, one is developing a regulatory framework to employ wind energy in the maritime.