India exploring ship scrappage policy with incentives

India is considering a maritime version of its vehicle scrappage policy, with plans to introduce Ship Breaking Credit Notes (SBCNs) — a new incentive designed to encourage ship recycling and domestic shipbuilding. The initiative, proposed by the Ministry of Ports, Shipping and Waterways (MoPSW), would allow shipowners to earn credit when dismantling old vessels at certified Indian yards and redeem it as a discount when ordering new ships from Indian shipyards. The idea mirrors the Vehicle Scrappage Policy 2024, under which car buyers receive a small discount when purchasing a new vehicle after scrapping an old one. Similarly, the SBCN aims to create a circular value chain in the maritime sector — turning retired vessels into credits that can stimulate demand for new, locally built ships while promoting environmentally responsible recycling, as per a report.

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