Business · Energy & Commodities · 7 hrs ago
India considers incentives to shift ships to methanol
India may make methanol the first fuel in its shipping-sector green transition.
Officials are considering tax concessions and more flexible compliance rules to encourage ships to switch.
The ports, shipping and waterways ministry and the director general of shipping have started a study on using methanol.
The proposals include uniform port charges and pricing, faster ship turnarounds and quicker approvals for refuelling facilities.
Methanol can be produced in India from sources such as agricultural residue, even as the country imports fossil fuels.
Regular visits by international container ships could build demand and encourage investment in methanol production, storage and ship refuelling.
Work on infrastructure for methanol-based shipping has begun, while officials continue to examine possible measures.
India is considering incentives to encourage ships to switch to methanol as part of a green transition plan for the shipping sector.
Possible measures include tax concessions, more flexible compliance and uniform methanol pricing at Indian ports.
The ports, shipping and waterways ministry and the director general of shipping have initiated a study on methanol use.
The proposals also include developing refuelling infrastructure and speeding up ship turnaround times and facility approvals.
Officials say demand from international container lines could encourage investment in methanol production, storage and supply to ships.
- Who
- India’s government is considering the measures; the ports, shipping and waterways ministry and the director general of shipping initiated a study.
- What
- The government may offer incentives and support infrastructure to encourage ships to switch to methanol.
- When
- The report was published on October 21, 2026.
- Where
- India, including its ports and methanol refuelling facilities.
- Why
- To support a green transition in shipping and encourage investment in domestic methanol production, storage and supply to ships.
This story does not have two clearly opposing sides.
The ports, shipping and waterways ministry and the director general of shipping initiated a study on methanol use.
Work had begun on building infrastructure for methanol-based shipping.
- Possible fuel pathway
- Methanol
- Potential incentives
- Tax concessions and flexibility in compliance
- Study participants
- Ports, shipping and waterways ministry and director general of shipping
- Publication date
- October 21, 2026
- Proposed port measures
- Uniform methanol pricing and charges, faster turnaround times and quicker facility approvals
What people are saying
Multiple suggestions are being examined,
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)