- Introduction
As per the reports in FY24 (2023-2024), only 125 ships were beached at the Alang Ship Recycling Yard, down from 131 ships in FY23, showing a 4.5% reduction. The global freight market boom is one of the critical factors, as it directly impacts the availability of ships for recycling. The competition from neighboring countries and higher compliance costs have significantly affected Alang’s performance in FY24. Ship recycling is associated with facilitating the sustainable disposal of end-of-life vessels. This practice involves dismantling ships to recover valuable materials, such as steel, and repurposing them for various demands. This industry has been facing criticism for several reasons including environmental, regulatory, economic, and social concerns. To counter such problems, The Indian Government has provided a framework of laws and international conventions, including the Ship Recycling Act, 2019 in adherence to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Only 90 of the 120 active facilities in Alang have received Hong Kong Convention compliance certification, highlighting gaps in readiness and compliance. The legal implications of ship recycling are multifaceted, encompassing environmental protection, labor rights, safety regulations, and international trade obligations.
Ship Recycling Centres of India
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- Alang-Sosiya Ship Recycling Yard (Gujarat): Alang-Sosiya, a small village approximately 30 km from Bhavnagar in the Gulf of Khambhat, is home to India’s ship recycling industry. Recent data indicated a downturn in the activity. In the fiscal year 2020-2021, the Alang Ship Recycling yard recycled 196 ships, a decline from its peak of 415 vessels per year between 2011 and 2012. Sosiya serves as an overflow yard for Alang, receiving fewer resources for modernization and providing low wages for workers.
- Mumbai Port and Kandla Port: It has an annual revenue collection of around $100-200 million annually with fewer contributors than the Alang-Sosiya Yard. They also have high logistic costs and lack modern infrastructure for ship handling.
- Vizag (Visakhapatnam) Ship Recycling Yard: Located in Andhra Pradesh, Vizag ship recycling yard is emerging as a promising sustainable and cost-effective alternative for ship recycling yards after Alang, but due to its proximity to Bangladesh, it faces huge competition from the ship recycling industry of Bangladesh.
Chennai (Tamil Nadu) Ship Recycling Yard: It generates less than $ 50 million annually. It operates on a smaller scale as compared to other yards with limited capacity due to a lack of modern infrastructure.
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