COASTAL SHIPPING TO BE PROMOTED THROUGH PPP MODE WITH VIABILITY GAP FUNDING
STATES TO BE SUPPORTED IN REPLACING OLD VEHICLES

India is moving forward firmly for the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in green industrial and economic transition. This Budget builds on India’s focus on green growth. This was stated by Union Finance & Corporate Affairs Minister Smt Nirmala Sitharaman while presenting the Union Budget 2023-24 in the Parliament here today.

Coastal Shipping

Speaking in line with green growth, Smt Sitharaman proposed that coastal shipping will be promoted as the energy efficient and lower cost mode of transport, both for passengers and freight, through PPP mode with viability gap funding.

Vehicle Replacement

The Finance Minister also mentioned that the states will be supported in replacing old vehicles and ambulances. A part of the State’s outlay of fifty year loan to be spent on capital expenditure is also linked or allocated for scrapping old government vehicles as one of the seven purposes. Smt Sitharaman further stated that replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy mentioned in Budget 2021-22, adequate funds have been allocated to scrap old vehicles of the Central Government.

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Promotion of coastal shipping through PPP with viability gap funding, alongside state support for vehicle replacement and scrapping. Coastal shipping is proposed to be promoted as an energy efficient, lower cost transport mode through Public Private Partnership arrangements with viability gap funding. States will be supported to replace and scrap old government vehicles and ambulances through designated capital expenditure allocations and additional funds to implement the vehicle scrapping policy for central government fleets.