Changing Fortunes
India Business Journal|January 2018

A proposed eco-friendly law may further boost the prospects of Alang's ship-breaking industry, as it returns to a buoyant business cycle.

Changing Fortunes

India has finally begun cleaning up its tarnished ship-breaking industry. Accordingly, the Union government has drafted a law to implement the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. This convention was adopted by the International Maritime Organization (IMO) in 2009.

The Hong Kong convention is yet to come into force as it has not been ratified by 15 countries, representing 40 per cent of the world's merchant shipping by gross tonnage. Only six countries - Norway, Congo, France, Belgium, Panama and Denmark - have ratified it so far.

"A draft legislation to implement the Hong Kong Convention to make the ship-recycling industry safe for its workers and the environment is now undergoing pre-legislative consultations. I am confident that we will ratify this convention in the not-too distant future," Union Shipping Minister Nitin Gadkari has said.

The proposed Safe and Environmentally Sound Recycling of Ships Bill, 2016 aims to give effect to the provisions of the Hong Kong Convention. The Bill makes it mandatory for ships to carry out all recycling activities in a safe manner and according to global practices. Any violation in this regard could attract a fine of Rs 10 lakh and a six-month imprisonment.

The Asian ship-breaking yards in Alang in India, Gadani in Pakistan, and Chittagong in Bangladesh account for around 75 per cent of the 1,000-plus ships scrapped every year globally. Ships in these Asian yards are dismantled on the beach rather than on dry docks. Beaching - dismantling ships on the beach - is banned under EU regulations as it leads to nearby soil, water and air getting toxic. Incidentally, the Hong Kong Convention does not ban beaching but pushes for clean beaching practices.

Industry's initiative

This story is from the January 2018 edition of India Business Journal.

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This story is from the January 2018 edition of India Business Journal.

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