New Bill Targets Massive Boost to India's Ship Recycling Capacity

SEATTLE (Scrap Monster):  The legislation passed recently by the Indian Parliament is expected to significantly boost ship recycling activities in the country. Incidentally, ‘The Ship Recycling Act 2019’ intends to increase the nation’s ship recycling capacity by 40% by 2024, thereby boosting its share of the global market to at least 60%.

According to Mansukh Lal Mandaviya, India’s Minister of State for Shipping the projected increase in ship recycling activity will almost double the sector’s contribution to the country’s GDP to around $2.2 billion. Also direct jobs supported by the sector will nearly double to 90,000.

The new act places restrictions on use of hazardous materials on ships and regulates the recycling of ships. The use of hazardous materials in ship invites financial penalties and jail sentence. The owners of new ships must obtain a certificate on the inventory of hazardous materials on board the vessel from the National Authority, which must be renewed every five years. Existing ship owners must obtain the above said certificate within five years.

Currently, India accounts for 30% of global market for ship recycling. The country along with Pakistan, China and Bangladesh processes approximately 90% of the world’s discarded vessels.