India’s isolated ship recycling industry, which accounts for 30% of the ships sent for scrapping worldwide, has been suffering from a prolonged slump, and is fighting for survival. Central and state governments are taking a series of steps to revive this industry. 55 crore has been provided by the central government to provide international standard facilities in Alang. The central government has formed a committee to resolve the issue of BIS.
During the first five months of 2023, 118 ships were sold for scrapping in South Asia, of which 53 ships came to Alang. That is, 10 ships per month have come to the shores of Alang. Previously, an average of 25 ships per month used to make final voyages to Alang.
A special committee chaired by Union Minister Dr. Mansukhbhai Mandaviya has been constituted by the Prime Minister’s Office to revive the ship recycling industry and double its capacity.
Facilities as per European Union Standard and as per Hong Kong Convention were provided separately by the plot holders at their own expense. Out of total 153 plots in Alang, 110 plots have already got facilities as per international standards. As an incentive, the central government is providing assistance of up to Rs 50 lakh to ship recyclers who make international facilities available in their plots.
Earlier, the central government had abolished the 2.5% customs duty on imported ships in the ship recycling industry. Abolition of housing cess levied per plot by state government GMBs, 50% reduction in plot development charges, 50% relaxation in beaching charges for Indian-flagged vessels.
Central-State Governments are constantly concerned for the industry
The Central and State Governments are constantly concerned for the ship recycling industry, and are taking steps to eliminate various taxes, concessions, barriers to re-rolling mills for ship plates, providing facilities as required by the E.U. Getting good cooperation from the government to do the work.> Hareshbhai Parmar, Jo.Secretary, Ship Recycling Industries Assoc. (India)
Trauma Center, TSDF will be of international standard
The central government is constantly trying to get recognition from the European Union (EU). According to the EU audit, provision of trauma center facility at Alang hospital and upgrading of TSDF hazardous waste management site were recommended, both of which are currently being made international.