Maritime Industry Urges Swift Clearance as Indian Ship Recycling Yards Face Certification Bottleneck
MUMBAI / ALANG — Prominent cash buyer Wirana Shipping has appealed to Indian regulatory authorities to expedite the issuance of statutory authorisations for domestic ship recycling yards, warning that administrative delays risk dampening international business just as the sector experiences a price rebound.
According to Wirana’s latest Market Outlook report, designated Indian Competent Authorities are facing procedural backlogs in issuing the Document of Authorisation for Ship Recycling (DASR). Currently, only 36 to 40 Indian Ship Recycling Facilities (SRFs)—predominantly clustered along the world’s largest shipbreaking belt in Alang, Gujarat—have received their DASR.
This represents less than half of the roughly 100 Indian recycling yards that have already upgraded infrastructure and earned Statements of Compliance under the International Maritime Organization’s (IMO) Hong Kong Convention (HKC) for the Safe and Environmentally Sound Recycling of Ships.
Critical Document for International Compliance
The delay has created operational headwinds because global shipowners now treat the DASR as a non-negotiable prerequisite.
Under maritime regulations, a yard’s DASR is essential to grant a retiring vessel an International Ready for Recycling Certificate (IRRC). Without verifiable documentation proving that a yard holds the requisite official sanction, shipowners risk compliance liabilities and are hesitant to finalize beaching and demolition contracts.
Speaking on the bottleneck, Rakesh Khetan, Chief Executive Officer of Wirana Shipping, highlighted the commercial uncertainty facing yards:
“Shipowners are asking for DASR, and they need a clear answer when considering a recycling facility. The delays need urgent attention so that owners and SRF can plan with greater certainty. We are mindful of the fact that India has a very high number of HKC-certified SRFs, and this poses a logistical challenge, but steps from designated Competent Authorities will help resolve these difficulties.”
Khetan acknowledged recent administrative cooperation in other regulatory areas, noting that official support regarding credit note issuances had been encouraging. He urged authorities to extend a similar hands-on approach to clear the DASR backlog.
Bureaucratic Hurdle Amid Commercial Rebound
The licensing roadblock comes at a sensitive time for the domestic shipbreaking trade. Global scrap vessel availability remains tight, forcing yards across South Asia to aggressively compete for a limited tonnage pool.
Driven by firm domestic steel demand and scarce inbound tonnage, Indian recyclers have recently improved their buying prices by USD 10 to USD 15 per Light Displacement Tonnage (LDT), maintaining a competitive edge over regional rivals in Bangladesh and Pakistan. Industry analysts expect price offers to stay resilient over the coming weeks, provided regulatory friction does not steer prospective tonnage elsewhere.
Preserving Environmental Rigour
Industry representatives stress that while administrative velocity is essential, regulatory rigor must remain uncompromised.
Hitesh Vyas, Vice President (Middle East) and Green Recycling Coordinator at Wirana Shipping, emphasized that expediting paperwork should not come at the expense of verified standards:
“The safety and environmental checks behind these authorisations must be maintained. Expedited processes without compromising the standards of the HKC is very important.”
With the Hong Kong Convention set to enter into force globally, India’s ship recycling sector is positioned to cement its reputation as a frontrunner in green ship recycling. Stakeholders warn, however, that closing the gap between yard-level capital upgrades and formal regulatory certification will determine whether Indian breakers can fully capitalize on the transition.
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