Ships in India may soon run on methanol as Centre is drawing up plans in
this regard, Union minister Nitin Gadkari said on Tuesday (3 Oct).
Gadkari also stressed the importance of developing waterways for their cost
"To cut the high cost of logistics in the country, inland waterways
are being developed in a major way while methanol will soon be made the fuel
for ships," Shipping Minister said.
He was speaking at the foundation stone-laying ceremony for an inland
waterway project in river Krishna in Vijayawada.
Methanol requires coal. Coal is an indigenous fuel available in AP,
Maharashtra, Madhya Pradesh and Chhattisgarh," the minister said.
He said exports can be increased by reducing the cost of logistics, which
will, in turn, create more employment.
Underlining the importance of waterways, the minister said the Centre has
taken up their development as the highest priority.
Cost of road travel worked out to Rs 1.50 while rail travel cost Re 1,
whereas by sea transport it is hardly 20 paise. That's the reason waterways are
In China, the logistics cost is 8-10
per cent, in European countries it is 12-14 per cent and in India it is 18 per
cent. Soon, all shipping here will be converted to methanol. This will reduce
cost and help increase our exports," Gadkari said.
He pointed out that Volvo has started operating buses that ran 100 per cent
There is another foreign company operating in India that can make engines
that run on methanol. Methanol is going to reduce the costs," Gadkari
He said a joint venture company would soon be formed with the Andhra
Pradesh government for developing the National Waterway-4 project under the
Sagar Mala project which envisages modernisation of the country's ports.