Slew of Sops to help fuel ships' shift to methanol

New Delhi: The government may prioritise methanol as the initial fuel pathway for ships as part of a green transition plan for the sector. Officials said the Centre could sweeten the switchover through tax concessions and flexibility in compliance as part of the methanol-first approach.

"Multiple suggestions are being examined," said an official, who did not wish to be identified. The ports, shipping and waterways ministry and the director general of shipping had initiated a study on the use of methanol, which calls for uniformity in port charges and speedier turnaround times for ships planning to use Indian methanol refuelling facilities.



Also on the table are uniform methanol pricing at Indian ports, infrastructure development for the speedier turnaround of vessels and the easing regulations for faster approvals needed to set up these facilities. While India continues to import fossil fuels, methanol can be domestically produced through avenues such as agricultural residue.

"Predictable port calls from international container lines could help establish demand for methanol and give suppliers greater confidence to invest in production, storage and bunkering (the supply of fuel to ships)," a second official said, adding that work is underway on boosting the local availability of alternative fuels. Work has already begun on building the infrastructure for methanol-based shipping.