NE BUSINESS BUREAU
NEW DELHI, OCT 15
The government has notified Director-General of Shipping as National Authority for Recycling of Ships, an official statement said on Thursday.
DG Shipping is designated as apex authority under the Recycling of Ships Act, 2019 for the ship recycling industry of India and the office of the national authority will be set up in Gandhinagar, Gujarat.
“Central Government notified the Director-General of Shipping as National Authority for Recycling of Ships under section 3 of the Recycling of Ships Act, 2019,” the Ministry of Shipping said in a statement.
As an apex body, DG Shipping is authorised to administer, supervise, and monitor all activities relating to ship recycling.
DG Shipping will look after the sustainable development of the ship recycling industry, monitoring the compliance with environment-friendly norms and safety and health measures for the stakeholders working in the ship recycling industry, the statement said.
DG Shipping will be the final authority for the various approvals required by the ship-recycling yard owners and state governments, it added.
“National Authority of Ship Recycling will be set up in Gandhinagar, Gujarat. The location of the office will benefit the ship recycling yard owners situated in Alang, Gujarat which is the home of Asia’s largest ship breaking and ship recycling industry in the world,” it said.
Under the ship recycling Act, India has acceded to the Hong Kong Convention for ship recycling under the International Maritime Organization (IMO).
DG Shipping is India’s representative in IMO and all the conventions of IMO are being enforced by DG Shipping.
India is looking to double its contribution from ship recycling to the country’s GDP to over USD 2 billion post-enactment of the ship recycling Act in December 2019. It also aims to take direct jobs from the recycling sector to about 90,000.
Currently, India recycles 70 lakh gross tonnage of ships per annum, while Bangladesh”s contribution is 68 lakh gross tonnage. Pakistan scraps ships worth 37 lakh gross tonnage, while China accounts for 34 lakh gross tonnage of recycling.
Shipping Minister Mansukh Mandaviya last month has said: “These four countries account for 90 percent of the ships recycled globally. Post enactment of Recycle Act, India eyes 50 percent of the global share as many countries will be sending ships here after India ratified the global convention.”
The existing Shipbreaking Code (revised), 2013, and the provisions of the Hong Kong Convention, 2009 are dovetailed in recycling legislation to ensure the environment-friendly recycling process of ships and adequate safety of the yard workers.
With the enactment of the legislation, India has set global standards for safe and sound environment-friendly recycling of ships, as well as ensure adequate safety of the yard workers.
Hoping for an increase in the business, a large number of recycling plots at Alang are obtaining Statement of Compliance (SOC) with the Hong Kong Convention.
