Private company to develop ship recycling near Alang at a cost of ₹10000 crore
Apart from ship recycling, J.M. Baxi Company has expressed commitment to build ship repairing, cruise terminal-jetty
By Mahebub Kureshi, Bhavnagar, Gujarat:
In a major boost to India’s maritime infrastructure and Gujarat’s ship recycling hub, private port terminal operator J.M. Baxi Company has announced an ambitious plan to invest ₹10,000 crore to establish an integrated maritime complex near Alang Ship Recycling Yard. The project — which includes a state-of-the-art ship recycling facility, a ship repair yard, and a cruise terminal with a jetty — is expected to transform the region into a multi-purpose maritime zone by 2029, according to top officials of the Gujarat Maritime Board (GMB).
This marks one of the largest private investments in India’s maritime sector in recent years, signalling renewed industry confidence in Alang’s potential as a global recycling and ship services destination.
A New Maritime Hub in the Making
According to project plans, J.M. Baxi Company will spearhead the development of a greenfield ship recycling facility adjacent to the existing Alang yard. The project will be executed in multiple phases, with the first phase expected to become operational by 2029.
A senior GMB official confirmed that nearly ₹8,500 crore will be spent on setting up the ship recycling and repair infrastructure, while an additional ₹1,500 crore will be allocated to develop allied facilities such as a cruise terminal, jetty, and sub-sea cable deployment operations.
“The first phase of the ship recycling facility will be operational by 2029,” the official said. “The project will strengthen India’s position as a global ship recycling and repair destination while creating hundreds of skilled jobs in the maritime ecosystem.”
Modern Ship Recycling with Global Standards
Internal GMB sources revealed that the proposed recycling yard will be equipped to handle seven to eight large vessels simultaneously, a significant leap in scale compared to most current Alang plots.
The facility is envisioned to adhere to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) standards, ensuring compliance with global environmental and worker safety protocols. The HKC recently came into force globally in mid-2025, and India’s active adoption of its guidelines has given new momentum to modernise Alang’s operations.
“This facility will be a model yard for safe, sustainable, and compliant ship recycling. It will bring international best practices and help the industry transition from traditional beaching methods to environmentally responsible techniques,” said a maritime expert familiar with the project.
Diversification into Ship Repair and Cruise Tourism
In addition to ship recycling, J.M. Baxi has also announced plans to diversify into ship repair, cruise tourism, and subsea cable deployment — sectors that align with India’s evolving maritime vision under the Sagarmala and Maritime India Vision 2030 initiatives.
The company plans to establish a modern ship repair yard capable of servicing both commercial and offshore vessels. This move could help India capture a larger share of the global ship repair market, which is currently dominated by facilities in Singapore, Dubai, and Colombo.
Further, the company is exploring a luxury coastal cruise service, featuring a European-flagged vessel with a capacity of 600 passengers, which will operate between major Indian coastal destinations.
“The ship will visit key tourist centres along India’s west coast,” said a senior company representative. “A dedicated cruise terminal near Alang is also under consideration to support this venture.”
This diversification underscores the company’s intention to build a comprehensive maritime ecosystem that supports not just ship dismantling, but also maintenance, tourism, and technology-linked services like sub-sea cable laying — a rapidly growing sector in the era of global digital connectivity.
Financing the Ambitious Plan
To finance the ₹10,000 crore project, J.M. Baxi plans to adopt a multi-pronged funding strategy, drawing capital from multilateral financial institutions, Indian banks, and internal accruals.
Top company officials confirmed that discussions with international financiers are underway, as the project aligns with global environmental financing frameworks promoting green and sustainable infrastructure.
“We intend to structure this as a long-term sustainable maritime investment,” said a source within the company. “Our ship recycling and repair operations will meet international standards of environmental protection and energy efficiency.”
Strategic Boost for Gujarat Maritime Board
The Gujarat Maritime Board, which oversees all non-major ports and maritime operations in the state, has welcomed the initiative, viewing it as a critical step toward revitalising Alang’s ship recycling sector.
Over the past decade, Alang — once the world’s busiest ship-breaking yard — witnessed a decline in activity due to stricter environmental norms, reduced ship arrivals, and global economic shifts. The proposed private-led project offers a strong revival opportunity.
“Alang has immense potential to evolve into a complete maritime cluster — not just for recycling, but also for repair, retrofitting, and tourism,” said a GMB official. “Private participation of this scale will help attract new technologies, skills, and international partnerships.”
Environmental and Social Impact
The new facility will reportedly emphasize sustainable dismantling processes, minimizing pollution and ensuring worker safety. The company plans to install hazardous material handling units, waste treatment systems, and stormwater management infrastructure as part of its compliance plan.
Local communities around Alang — particularly the workforce engaged in ship breaking — are also expected to benefit from training programs and improved working conditions under the project.
“J.M. Baxi’s project could usher in a new era for Alang, where the focus shifts from low-cost dismantling to high-value, sustainable ship services,” said an environmental analyst. “If implemented correctly, it will set a new benchmark for responsible recycling.”
Government’s Broader Vision for Alang
The central government had earlier announced its intention to double Alang’s recycling capacity from 4.5 million metric tons to 9 million metric tons by 2022, as part of its push to make India a global hub for ship dismantling under Maritime India Vision 2030.
However, progress on that plan had slowed in recent years due to delays in regulatory clearances and limited private participation. The GMB also initiated parallel efforts to expand ship recycling plots toward the Mathavada coast, adjacent to Alang, to accommodate new facilities.
The latest announcement from J.M. Baxi now signals a significant turnaround for those plans.
Race to double Alang’s capacity from 2022
The central government’s 2022 plan aimed to expand Alang’s ship recycling capacity from 4.5 million to 9 million metric tons, but little progress was achieved over three years. The Gujarat Maritime Board began work to open new recycling plots on the Mathavada coast near Alang, but large-scale private investments were missing. Now, J.M. Baxi’s proposal to establish a state-of-the-art ship recycling and repair system with an investment of ₹10,000 crore has revived hopes of doubling capacity and modernizing India’s ship dismantling industry.
A Future Maritime Cluster
Industry experts believe that if J.M. Baxi’s project succeeds, it could catalyze transforming Alang into an integrated maritime hub, encompassing recycling, repair, cruise operations, and subsea infrastructure.
“The plan complements India’s long-term maritime strategy,” said a senior industry observer. “It can attract foreign collaboration, spur ancillary industries, and position Gujarat as a leader in sustainable maritime development.”
As India embraces cleaner, safer, and globally compliant ship recycling practices, the proposed ₹10,000 crore investment near Alang represents both an industrial revival and a symbol of confidence in the region’s maritime potential.
If timelines are met, by 2029, Alang could once again emerge as the beating heart of India’s ship recycling and repair industry — this time, powered by sustainability, technology, and global standards.
Author: shipping inbox
shipping and maritime related web portal
