Parliament Passes Ship Recycling Bill

Bill will ensure global standards for environmentally-friendly recycling of Ships and ensure adequate safety of the yard workers, will also boost employment and business opportunities, say Mansukh Mandaviya

Parliament on 9 December 2019 passed a landmark “The Recycling of Ships Bill 2019’’ for Safe and Environmentally Sound Recycling of Ships in India. Passing of this Bill is a giant step and historical moment in the Indian Maritime arena and will have far reaching effects in Indian Ship Recycling industry. The existing Shipbreaking Code (revised), 2013 and the provisions of the Hong Kong Convention, 2009 are dovetailed in this Bill. The Bill, upon becoming Act, will ensure environment friendly recycling process of Ships and adequate safety of the yard workers. On this occasion, Union Minister of State for Shipping (I/C) and Chemical & Fertilizers, Mansukh Mandaviya said that India is a leader in the global ship recycling industry with a share of over 30 per cent of the global market. With the enactment of this bill, India will set global standards for safe and sound environmentally-friendly recycling of Ships, as well as ensure adequate safety of the yard workers. He said that this bill will pave the way for more global ships to enter into Indian Shipyards for recycling and boost employment and business opportunities also.

Mr. Mandaviya said that there are various environmental issues and workers’ safety concerns interconnected with the ships recycling Industry. Both these issues have been adequately addressed in this bill. He said that the protection of environment and safety of workers are the soul of this bill. Now, ships to be recycled in India will need to obtain a ‘Ready for Recycling Certificate’ in accordance with the Hong Kong Convention. Hoping for increased business, a large number of Recycling plots, especially at Alang in Gujarat, are also gearing up and obtaining Statement of Compliance (SOC) with the Hong Kong Convention.

The Key Benefits of the bill are as follows:

· The bill will harbinger significant increased number of global ships entering into Indian Shipyards for Recycling.

· Recycling of Ships will boost business & employment opportunities and strengthen India’s position in the recycling industry.

· It will raise the brand value of our Ships Recycling Yards located at Alang in Gujarat, Mumbai Port, Kolkata Port & Azhikkal in Kerala.

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

· Ships Recycling facilities will become compliant to International standards and Ships will be recycled only in such authorised facilities.

· The tremendous growth of business activities will contribute to the country’s GDP.