It is targeting funding from the GlobalEnvironment Fund (GEF) to encourage cargo owners to move goods by sea not road,local media said.

The ministry believes cash is availablebecause shipping is considered the most eco-friendly and fuel-efficient mode oftransport. It is also cheaper.

It could seal a deal before the newgovernment takes office in Delhi.

Plans include priority berthing facilities forcoastal ships at government-owned ports, at the expense of internationallytrading vessels.