I recently watched a video comparing China’s debt-driven infrastructure expansion with Japan’s slower, far more profitable investments in railways. The contrast was striking. China built fast and big, often backed by heavy debt and weak returns. Japan built methodically, prioritising technologies and projects that could sustain themselves economically over decades.
That comparison stayed with me because the same divergence is now visible much closer to home—in how different Indian governments are adopting green technologies for inland water transport and electric boats.
The lesson is simple but uncomfortable: green technology alone does not guarantee sustainability. The choice of technology—and its economic logic—matters just as much as environmental intent.
Green Is Not Automatically Sustainable
India is rightly pushing for decarbonisation across transport sectors. Electric mobility has moved from the fringes to the mainstream, supported by long-term policies like FAME. In water transport too, electric boats are often presented as the obvious green alternative to diesel vessels.
But electric boats are not all the same.
Some electric boat projects are already economically viable and operationally profitable. Others, despite their green credentials, will never recover their additional capital cost, no matter how long they operate. The difference lies not in ambition, but in technology choice and financial discipline.
Two contrasting approaches within India illustrate this clearly.
Kerala Water Transport’s Calibrated Approach: Solar Electric Boats That Pay for Themselves
The Kerala Water Transport Department (KSWTD) has taken a careful, calibrated approach to green transition. Instead of chasing the most complex or capital-intensive electric solutions, it invested in solar electric boats—a technology choice grounded in operating economics.
The logic is straightforward:
- Solar electric boats dramatically reduce energy costs.
- Day-to-day operations become significantly cheaper than diesel immediately.
- The savings generated during operation help offset the higher upfront cost of green technology in three years.
In practical terms, these boats begin saving money from day one. They do not depend on continued subsidies to stay afloat. Over their operating life, they generate enough operational surplus to justify the initial capital investment.
This is not a flashy or headline-grabbing approach. It is slow, deliberate, and grounded in total cost of ownership. But it works.
Much like Japan’s railway investments, Kerala Water Transport’s model prioritises long-term viability over rapid scale or technological spectacle.
The High-CAPEX Trap: Electric Boats That Will Never Break Even
Now contrast this with some other electric boat initiatives in the country, including projects by Kochi Water Metro and transport authorities in West Bengal.
These institutions opted for highly expensive electric boats, often with sophisticated systems and large battery packs. While technically impressive and environmentally well-intentioned, the underlying economics are deeply flawed.
The problem is not that these boats are electric. The problem is that:
- Their capital cost is disproportionately high.
- The operational savings from switching from diesel to electric are relatively modest.
- The gap between CAPEX and OPEX savings is so large that the boats will never break even over their lifetime.
In simple terms, no amount of fuel savings can justify the additional investment made. These projects may look green on paper, but financially they require permanent support—either through subsidies, grants, or higher fares.
This is the infrastructure equivalent of China’s debt-heavy expansion: impressive scale and speed, but weak fundamentals.
Why This Difference Matters
The contrast between these two approaches has real consequences.
Kerala Water Transport Department’s solar electric boats:
- Are economically defensible
- Can be replicated without ballooning public debt
- Create confidence among operators and financiers
High-CAPEX electric boat projects:
- Lock governments into long-term financial commitments
- Reduce appetite for future green investments
- Risk turning “electric boats” into a cautionary tale rather than a success story
The danger is not just financial—it is reputational. When expensive green projects fail to deliver economic value, policymakers become hesitant to support even well-designed, viable alternatives.
A Broader Policy Problem
This divergence reflects a deeper issue in how green infrastructure decisions are made in India.
Too often, policy and procurement focus on:
- Initial capital cost approvals
- Technology novelty
- Visibility and branding
What gets overlooked is total cost of ownership—the single most important metric for sustainable infrastructure.
Ironically, India already understands this principle well in road transport. Electric vehicles received long-term, predictable support under FAME precisely because policymakers recognised that technology adoption requires time, stability, and economic realism.
In water transport, however, the same discipline is missing.
What Governments Should Do Differently
If India is serious about green marine transport, a few course corrections are essential:
- Mandate lifecycle cost analysis before approving electric boat projects
- Prioritise technologies that achieve operational breakeven or surplus
- Avoid bespoke, capital-heavy designs unless their economics are clearly proven
- Use savings from profitable green projects to fund more advanced technologies later
Green transition should be staged, not rushed.
Sustainable Transport Must First Be Economically Sustainable
The lesson from Japan’s railways—and from KSWTD’s solar electric boats—is clear. Sustainable infrastructure is built patiently, grounded in economics, and scaled responsibly.
Electric boats can absolutely play a transformative role in India’s inland and coastal transport. But only if we choose technologies that can stand on their own financially.
Decarbonisation driven by sound economics will endure. Decarbonisation driven by optics will not.
India still has the opportunity to lead in affordable, scalable, and profitable green marine transport. The question is whether we choose the path of calibrated innovation—or repeat the mistakes of debt-driven ambition.
References
ResearchGate – Technological choices of a medium speed electric ferry
Research Gate – 100 Passenger Ferry Boats From WoodenSteel Diesel to GRP Solar Electric
Sandith Thandasherry 