JNPA gets $70 million IFC blue financing for cleaner ship operations

The Jawaharlal Nehru Port Authority (JNPA) is set to make ship operations cleaner, with vessels able to switch off diesel generators while berthed and draw power from the shore, under a US$70 million blue financing arrangement with the International Finance Corporation (IFC).The first phase will focus on one container terminal, followed by expansion to the remaining terminals. (HT File Photo/Representational)JNPA has put the financial implication of the shore-power project at ₹650 crore. The project is expected to cut carbon emissions by 63%, reduce harmful air pollution by up to 90% and create more than 400 jobs.The financing is significant as the initiative is being described as India’s first blue-financing framework for the maritime sector. The transaction is also the first labelled blue financing for port infrastructure in the Asia-Pacific region and among the first aligned with the Blue Finance guidelines under the Indian Ports Act, 2025.Under the system, vessels at berth will connect to electricity supplied from land instead of running auxiliary diesel engines for their onboard requirements. JNPA said no major Indian port has yet deployed shore power commercially at scale, making the project a potential model for wider adoption.The project will be implemented in two phases over two to three years. The infrastructure will include 33-kV substations, cable systems, frequency converters and shore-side connection points at multiple berths.The first phase will focus on one container terminal, followed by expansion to the remaining terminals.JNPA’s project information says the facility is being implemented across its terminals except the liquid-cargo terminal and is targeted for completion by January 2028.JNPA said the project will make it the first port in Asia with the facility. JNPA already provides shore power to port craft, with the existing facility enhanced in 2021. The new project will extend the system to commercial vessels using the port.JNPA chairperson Gaurav Dayal said the financing would help the port manage the risks involved in introducing the technology. “Funding from international development institutions like IFC will enable JNPA to manage early-stage commercial risks, build operational experience, and bring international best-practices, prior to scale-up,” Dayal said. “A successful operational and commercial demonstration by India’s largest container port would provide proof of concept for broader adoption of SPS across Indian ports and other emerging markets.”The environmental impact is expected to be substantial. Visiting ships accounted for about 191,000 tonnes of CO₂-equivalent emissions at JNPA in 2023-24. Once both phases are operational, vessels are expected to use about 119,084 MWh of shore electricity annually, avoiding an estimated 71,272 tonnes of CO₂-equivalent emissions that could otherwise be generated by auxiliary engines.The system will initially draw electricity from the national grid, while JNPA is exploring ways to increase the renewable component through power-purchase agreements and additional solar generation.Ships will also need compatible equipment to connect to the shore-power system, making cooperation from shipping lines and vessel operators essential to its wider use. The initiative forms part of the Harit Sagar Green Port Guidelines and Maritime India Vision 2030, which seek to reduce pollution and greenhouse-gas emissions from port operations and encourage cleaner technologies.IFC South Asia division director Manuel Reyes Retana said the investment would demonstrate the potential of sustainable financing in India’s maritime sector. “By partnering with India’s largest and busiest container port we are going beyond an infrastructure upgrade to demonstrate that sustainable financing can work for the country’s maritime sector at scale,” Retana said.IFC also supported JNPA in developing a Sustainable Finance Framework to mobilise additional green and blue financing for future investments. The transaction is also described by JNPA as the first development-finance institution investment in India’s state-owned major port authorities.