India - World No. 1 in Ship Recycling, Pg1

Key Highlights:

• India achieved the top position globally in ship recycling in 2025, five years ahead of its Maritime India Vision 2030 target.
• The country's global market share in ship recycling increased to 35.4% in 2025, up from 30.1% in 2024.
• Ship recycling volumes in India surged by nearly 60%, from 1.86 million Gross Tons (GT) in 2024 to 2.99 million GT in 2025.
• This milestone was confirmed by a report from the United Nations Conference on Trade and Development (UNCTAD).

Ship Recycling.png

Detailed Insights:

• The achievement is largely attributed to sustained policy reforms, industry efforts, and adherence to international environmental and safety standards.
• The Recycling of Ships Act, 2019, played a pivotal role by aligning India's domestic regulatory framework with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
• The Hong Kong Convention, which India ratified in 2019, officially entered into force on June 26, 2025, establishing a global standard for ship recycling.
• Financial support of ₹53.50 crore (US$ 6.05 million) was provided to modernize facilities, enabling 115 ship recycling yards to become HKC-compliant.
• The Alang-Sosiya Ship Recycling Yard in Gujarat remains the world's largest, forming the backbone of India's ship recycling industry.
• India plans to expand its ship recycling capacity at Alang to approximately 9 million Light Displacement Tons (LDT), aiming to nearly double its current capacity.
• The Ship-breaking Credit Note Scheme incentivizes ship owners by offering a credit note equivalent to 40% of the scrap value, usable for up to 5% of the cost of a new vessel built in India.
• Efforts are underway to secure the inclusion of Indian ship recycling yards in the European Union's approved list of recycling facilities.

Key Concepts Involved:

• Maritime India Vision 2030: A comprehensive ten-year blueprint by the Indian government for the development of the maritime sector, including ports, shipping, and ship recycling.
• Recycling of Ships Act, 2019: Indian legislation enacted to regulate ship recycling activities, ensuring compliance with international safety and environmental standards.
• Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC): An international treaty adopted by the International Maritime Organization (IMO) to ensure that ships are recycled safely and in an environmentally sound manner.
• Alang-Sosiya Ship Recycling Yard: Located in Gujarat, India, it is recognized as the world's largest ship recycling facility, playing a crucial role in global ship dismantling.