Relief for Alang Ship Recycling Industry as Customs Eases Key Rules
Alang, Gujarat – 8th October 2025:
In a significant move that promises relief to the ship recycling industry in Alang, the government has begun addressing long-pending regulatory issues in a phased manner. The latest development comes as the Customs Department decided to withdraw the requirement for a Chartered Engineer (CE) Certificate for ships arriving at Alang for scrapping, following strong and fact-based objections raised by the Ship Recycling Industries Association (India), known as SRIA.
This decision marks a major breakthrough for Alang’s ship recyclers, who had been struggling with unnecessary procedural delays caused by the rule. The move is seen as a sign of increasing coordination between the government and the ship recycling sector, which is striving to maintain its competitiveness amid a volatile global market.
The issue was brought to light during an outreach programme organized by the National Assessment Centre (NAC) under the chairmanship of its convener, where representatives from sectoral associations, trade members, and stakeholders discussed a range of challenges facing the ship recycling industry. The discussions resulted in final decisions aimed at streamlining the assessment and clearance procedures for vessels arriving for dismantling at Alang.
According to the SRIA, some Faceless Assessment Groups (FAGs) had been insisting on a Chartered Engineer Certificate during the assessment of ships imported for recycling at the Alang yard. This practice had become a significant obstacle, as it added a redundant layer of certification not originally intended for vessels meant for scrapping. The Association, backed by documentation and facts, argued that such certification was unnecessary, given that ships destined for dismantling undergo detailed checks by multiple government agencies before any recycling activity begins.
SRIA’s sustained representation to the Customs authorities finally led to a review of the policy. After considering inputs and recommendations from the NAC members and stakeholders, the Customs Department decided that the CE certificate would no longer be required as part of the regular assessment process for ships imported for recycling by FAGs. However, the Department clarified that in exceptional cases—where there are specific doubts, valuation issues, or irregularities—the services of a Chartered Engineer may still be sought, but only with prior approval from the concerned Commissioner of Customs.
The Joint Secretary of SRIA, Mr. Haresh Parmar, welcomed the decision and expressed gratitude to the government for its supportive approach. “The Indian Government is fully supporting the ship recycling industries of Alang,” he said. “Concerned government agencies like the Gujarat Maritime Board, Customs, Gujarat Pollution Control Board, and others are cooperating with us to ensure smooth operations.”
The decision has been particularly well received in Alang, where hundreds of recycling plots and thousands of workers depend on efficient ship dismantling procedures for their livelihoods. The CE certificate requirement had been creating delays in the clearance process, increasing costs, and slowing down the flow of ships to the yard. With this exemption, the industry expects a quicker turnaround time for vessel clearances and a reduction in administrative hurdles.
However, not all of SRIA’s demands were met. The Association had also requested an exemption from the requirement of furnishing end-use bonds—a form of guarantee that ensures the imported ships are used strictly for recycling purposes. Despite strong arguments in favor of waiving this requirement, the Customs Department decided to retain it. After detailed discussions with SRIA representatives and the Faceless Assessment Group, the Department concluded that importers must continue to provide the bond, ensuring accountability and preventing any potential misuse of vessels imported under recycling permits.
The Customs authorities emphasized that proper compliance with bond conditions would be monitored closely. In cases where violations or deviations are detected, appropriate action will be taken. At the same time, to make the process more transparent and efficient, Customs has advised that all end-use bonds should be submitted electronically through the “Single Anubhan” platform—a newly introduced digital system that simplifies bond submission and monitoring.
This hybrid outcome—relief from one regulation but continuation of another—reflects the government’s effort to strike a balance between facilitating ease of doing business and maintaining regulatory oversight.
Industry experts note that Alang’s ship recycling operations already face scrutiny from multiple agencies. Every ship arriving for dismantling undergoes checks by the Customs Department, Gujarat Maritime Board (GMB), Gujarat Pollution Control Board (GPCB), Surveyors, and the Atomic Energy Regulatory Board (AERB), among others. The addition of a CE certificate requirement, therefore, appeared redundant and burdensome.
Vishnu Kumar Gupta, President of the Ship Recycling Industries Association (India), expressed satisfaction with the Customs Department’s decision. “The rule making Chartered Engineer’s Certificate mandatory for ships coming for scrapping in Alang was unnecessary,” Gupta said. “The checking of ships coming into Alang is already done by Customs, GPCB, Surveyor, AERB, and GMB. Such certificates are required only for cargo ships or ships in voyage—not for those coming for scrapping. Our demand has been accepted by the Customs Department, and this will greatly help the industry.”
The easing of the CE certificate rule is expected to bring immediate relief to ship recyclers, particularly at a time when the market is showing signs of instability. Fluctuations in global steel prices, rising compliance costs, and environmental obligations under international conventions have placed added pressure on Alang’s recyclers.
Analysts believe that government responsiveness to the industry’s operational concerns could help restore confidence among stakeholders and attract more vessels for recycling in India, especially as competition grows from emerging ship recycling centers in countries like Bangladesh, Pakistan, and Turkey.
Alang, located along the Gulf of Khambhat in Gujarat, is one of the largest ship recycling yards in the world, with a history of over four decades. It plays a crucial role not only in recycling steel but also in generating employment and contributing to the circular economy. The government’s recent steps to resolve regulatory bottlenecks signal a renewed commitment to strengthening this strategic industry, which is also adapting to the international Hong Kong Convention standards for safe and environmentally sound ship recycling.
With the Customs Department’s latest clarification, industry leaders are optimistic that more reforms will follow, focusing on digitalization, faster clearances, and smoother coordination among agencies. While some challenges remain—such as the continuation of the bond requirement and global market uncertainties—the exemption from the CE certificate rule is being hailed as a victory for reason, efficiency, and industry-government cooperation.
For Alang’s recyclers, this change not only reduces bureaucratic delays but also reinforces faith in the government’s commitment to make India’s ship recycling sector more globally competitive. As the world increasingly looks toward sustainable and compliant dismantling of end-of-life ships, the reforms unfolding at Alang could mark the beginning of a more modern and transparent future for the industry.
Author: shipping inbox
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