India Eyeing 60 Per Cent Share In Global Ship Recycling Business: Mandaviya

India is looking to raise its global share in ship recycling business to 60 per cent and almost double its contribution to country's GDP to about USD 2.2 billion post enactment of a law for recycling of ships, Union Minister Mansukh Lal Mandaviya said on Monday.

Shipping Minister Mandaviya also said that direct jobs from recycling sector were likely to double to about 90,000. The Parliament today gave nod to the Recycling of Ships Bill, 2019 which seeks to regulate recycling of ships in accordance with international standards.

"There are 53,000 merchant ships globally. Every year 1,000 are recycled and 300 are recycled in India, which is 30 per cent of the global recycling. Now after nod to Recycling Bill, we expect it to touch 60 per cent as the bill provides for acceding to the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, 2009. We expect ships for recycling from many nations," Mandaviya told PTI.

Currently, India recycles 70 lakh gross tonnage of ships per annum, while Bangladesh's contribution is 68 lakh gross tonnage, he said. Pakistan scraps ships worth 37 lakh gross tonnage, while China accounts for 34 lakh gross tonnage of recycling, he added.

"Together, these four countries account for 90 per cent of the ships recycled globally. Now that Parliament has given nod to the Recycling Bill, India eyes 60 per cent of the global share as many countries will be sending ships here after India ratified the global convention," Mandaviya said.

He said ship recycling's contribution to GDP is USD 1.3 billion (about Rs 9,200 crore) at present, which is expected to almost double to USD 2.2 billion (about Rs 15,600 crore). Terming the passing of the Bill as a giant step and a historical moment in the Indian maritime arena, Mandaviya said it will have far reaching effects on the ship recycling industry.

The existing Shipbreaking Code (revised), 2013 and the provisions of the Hong Kong Convention, 2009 are dovetailed in this Bill and upon becoming Act, it will ensure environment friendly recycling process of ships and adequate safety of the yard workers. With the enactment of this bill, India will set global standards for safe and sound environment-friendly recycling of ships, as well as ensure adequate safety of the yard workers.

Mandaviya said the issue of environmental and workers' safety have been adequately addressed in this bill and both the issues are the soul of the bill. Hoping for increase in the business, a large number of recycling plots, especially at Alang in Gujarat, are gearing up and obtaining Statement of Compliance (SOC) with the Hong Kong Convention, he added. The Bill is expected to raise the brand value of ship recycling yards located at Alang in Gujarat, Mumbai Port, Kolkata Port and Azhikkal in Kerela.

"10 per cent of country's secondary steel needs, as an outcome of Recycling of Ships Bill, will be met in an eco-friendly manner," Mandaviya said.