India’s Two Alang Ship Recycling Yards Set for EU Approval
NEW DELHI: India’s ship recycling industry is poised for a significant breakthrough, with two facilities near Alang in Gujarat expected to be added to the European Union’s approved ship recycling facility list. If confirmed, the move would mark the first entry of South Asian ship recycling yards into the EU list and underline the industry’s progress in improving environmental and safety standards.
The two yards expected to receive EU approval are Shree Ram Vessel Scrap/Shree Ram Shipping Industries and YSI Recyclers, both located in the Alang region of Gujarat. The European Commission has proposed their inclusion, with a public consultation underway until the end of August. Formal inclusion could follow after a period of around two to three months, according to industry expectations.
The development is particularly important because the EU Ship Recycling Regulation (EU SRR) imposes stricter requirements than the International Maritime Organization’s Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. EU-flagged vessels can be recycled only at facilities included on the EU-approved list.
Until now, major ship recycling countries in South Asia, including India and Bangladesh, had no yards on the EU list. This created a significant challenge for shipowners seeking environmentally compliant recycling facilities while operating vessels connected with European trade.
The expected approval follows years of investment and improvements by Indian yards. Alang’s traditional beaching-based recycling model has faced scrutiny over environmental protection and worker safety. The two yards reportedly introduced additional infrastructure to meet the EU’s demanding requirements.
Among the improvements are concrete paving along the beachfront and the construction of artificial pier-like structures about five to six metres high. These facilities allow the bow of a vessel to be positioned against the structure rather than allowing the ship to become completely grounded on the beach. The approach is similar to the landing method used at certain EU-approved yards in Türkiye.
The Japanese Shipowners’ Association has welcomed the development. Kumiko Iwasa, executive responsible for ship recycling, described the possible inclusion of the Indian yards as a landmark development and praised the efforts made by the facilities to improve safety and environmental performance.
However, the association also stressed the need for greater international regulatory harmonisation. The IMO’s Hong Kong Convention entered into force in June 2025 and represents the global framework for safe and environmentally sound ship recycling. The EU SRR, by contrast, remains a regional regulation.
Industry representatives argue that the coexistence of different regulatory regimes can increase complexity and compliance costs for shipowners and recycling yards. They favour eventual alignment of EU requirements with the global Hong Kong Convention.
The Hong Kong Convention is currently in an experience-gathering phase, with implementation being reviewed before a broader assessment and possible amendments. The EU regulation itself contains provisions allowing adjustments if a generally applicable international regulation is introduced.
For Alang, the potential EU recognition could strengthen the reputation of India’s ship recycling sector and encourage other yards to invest in higher environmental, safety and infrastructure standards. With around 120-130 yards operating in the Alang area, the approval of the first two could also create a new benchmark for the wider Indian recycling industry.
The development therefore represents more than the approval of two individual facilities. It could signal a gradual shift in South Asian ship recycling towards globally recognised standards while strengthening India’s position in the international green ship recycling market.
Author: shipping inbox
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