Alang Current Affairs - 2020

Parliament passes The Recycling of Ships Bill, 2019

On 9 December 2019, Parliament passed the landmark ‘The Recycling of Ships Bill 2019’ for Safe and Environmentally Sound Recycling of Ships in India. Passing of this Bill will have far reaching effects in Indian Ship Recycling industry and is also a giant step and historical moment in Indian Maritime arena.

Key Features:  The Recycling of Ships Bill 2019

It joins together the existing Shipbreaking Code (revised),2013 and the provisions of the Hong Kong Convention, 2009. Thereby, now, ships to be recycled in India will need to obtain a ‘Ready for Recycling Certificate’ in accordance with Hong Kong Convention.

The protection of environment and safety of workers are soul of this bill. Once the Bill receives President’s assent and becomes an Act, it will ensure environment friendly recycling process of Ships and adequate safety of the yard workers.

The bill adequately address various environmental issues and workers’ safety concerns interconnected with the ships recycling Industry.

Key Benefits of bill:


It will herald significant increased number of global ships entering into Indian Shipyards for Recycling. The Recycling of Ships will in turn boost business & employment opportunities and strengthen India’s position in recycling industry.

It will raise brand value of India’s Ships Recycling Yards located at Alang (Gujarat), Mumbai Port, Kolkata Port & Azhikkal (Kerela).

10% of country’s Secondary steel needs, which is an outcome of Recycling of Ships, will be met in an eco-friendly manner.

Ships Recycling facilities will comply to International standards and Ships will be recycled only in such authorised facilities. Thus the tremendous growth of business activities will turn contribute to the country’s GDP.


India is a leader in global ship recycling industry with a share of more than 30% of the global market. With enactment of this bill, India will set global standards for safe and sound environmentally-friendly recycling of Ships, and will ensure adequate safety of yard workers. This this bill will also pave the way for more global ships to enter into Indian Shipyards for recycling and boost employment and business opportunities also.

Government signs $76 Million loan deal with JICA to Upgrade Alang-Sosiya Shipyards

The Union Government signed $76 million loan deal with Japan International Cooperation Agency (JICA) for starting upgradation project related to environment management plan at Alang-Sosiya ship recycling shipyards in Gujarat.

The project will be executed by Gujarat Maritime Board (GMB) and is likely to be completed by 2022. The total cost of project is $111 million out of which $76 million will be provided by JICA as soft loan. Out of remaining amount, $25 million will be borne by Gujarat Government as taxes and fees and balance $10 million will be shared by Ministry of Shipping.

Benefits of the project

This project will help Alang-Sosia ship-recycling yards to comply with international safety & environmental regulations. This will attract more business at recycling facilities at Alang, thereby further consolidate India’s share in global ship-recycling industry.

It will also help in safeguarding marine and coastal environment. The use of advanced decontamination technology will rule out possibility of fire accidents in oil and chemical tankers, thereby ensuring workers safety.  The project is expected to increase in direct employment from 50,000 to 92,000 people and in-direct employment from 1.5 lakhs to 3 lakh people.

Japan International Cooperation Agency (JICA)

The JICA is governmental agency that coordinates official development assistance (ODA) for government of Japan. Its mandate is assisting economic and social growth in developing countries, and promotion of international cooperation.