{"id":108234,"date":"2026-06-15T11:53:35","date_gmt":"2026-06-15T06:23:35","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=108234"},"modified":"2026-06-15T11:53:35","modified_gmt":"2026-06-15T06:23:35","slug":"ship-recycling-in-india","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/ship-recycling-in-india\/","title":{"rendered":"Ship Recycling in India and the New Green Recycling &#8211; Explained"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><strong>Ship Recycling Latest News<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India recently issued its first ship recycling credit note under a new incentive scheme aimed at promoting green ship recycling and domestic shipbuilding.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Ship Recycling in India<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Ship recycling<\/b><span style=\"font-weight: 400;\"> refers to the dismantling of old or decommissioned ships for recovering valuable materials such as <\/span><b>steel, machinery, spare parts, and reusable equipment<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It also ensures the environmentally safe disposal of hazardous substances present in ships.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ship recycling is economically important because ships contain large quantities of recyclable steel and equipment, making the sector valuable for the <\/span><b>metal, manufacturing, and shipping industries<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India is one of the world\u2019s leading ship recycling nations and plays an important role in the global maritime economy.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Major Ship Recycling Centres in India<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s ship recycling industry is concentrated primarily in:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Alang-Sosiya Ship Recycling Yard, Gujarat<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Ship recycling facilities in Maharashtra and Tamil Nadu<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Among these, <\/span><b>Alang in Gujarat<\/b><span style=\"font-weight: 400;\"> is globally significant and represents one of the <\/span><b>largest ship recycling clusters in the world<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The region hosts around 120 operational plots, representing one of the highest concentrations of Hong Kong International Convention (HKC)-compliant ship recycling facilities worldwide.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Legal and Environmental Framework<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ship recycling involves environmental and occupational safety risks because old vessels often contain hazardous materials such as:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Asbestos<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Heavy metals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Toxic oils and chemicals<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Polluting waste materials<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To regulate the sector, India enacted the <\/span><b>Recycling of Ships Act, 2019<\/b><span style=\"font-weight: 400;\">, which aligns domestic regulations with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Act seeks to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Promote safe recycling practices<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Improve worker safety standards<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Reduce marine and coastal pollution<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Encourage environmentally sustainable dismantling<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India ratified the <\/span><b>Hong Kong Convention in 2019<\/b><span style=\"font-weight: 400;\">, strengthening its position as a major global ship recycling destination.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Economic Importance of Ship Recycling<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ship recycling sector contributes to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Recovery of steel for domestic industries<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Employment generation in coastal regions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Growth of maritime ancillary industries<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Reduction in dependence on imported scrap metal<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, the sector supports India\u2019s broader maritime ambitions under initiatives such as the <\/span><b>Maritime India Vision 2030<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>Blue Economy framework<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>News Summary<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has issued its first-ever ship recycling credit note to Bella Shipping, marking the beginning of a new incentive framework intended to strengthen the circular economy and promote environmentally sustainable ship recycling.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company received the credit note after recycling and dismantling a Capesize bulk carrier at an Indian shipyard.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme was introduced under the Budget 2025-26, as part of broader efforts to boost maritime growth through a ship recycling and shipbuilding support mechanism.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>How the Credit Note Scheme Works<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the scheme, ship owners will receive a <\/span><b>credit note equal to 40% of the scrap value<\/b><span style=\"font-weight: 400;\"> generated from a recycled ship.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The credit note can later be redeemed for up to 5% of the fair price of a new vessel built in an Indian shipyard.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The scheme seeks to create a stronger link between <\/span><b>ship dismantling and domestic shipbuilding<\/b><span style=\"font-weight: 400;\">, thereby encouraging shipping companies to place orders with Indian shipyards.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to officials, the initiative aims to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Increase domestic shipbuilding activity.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Strengthen circular economic practices.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Improve the competitiveness of Indian shipyards.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Encourage environmentally safe recycling practices.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Eligibility and Environmental Conditions<\/strong><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The benefits are available only to <\/span><b>HKC-compliant recycling yards<\/b><span style=\"font-weight: 400;\">, ensuring that environmental safeguards remain central to the scheme.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To qualify, recycling facilities must maintain standards related to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Hazardous waste handling<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Worker safety and emergency preparedness\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Environmental monitoring systems\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Pollution control measures\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Directorate General of Shipping, State Maritime Boards, and recognised agencies conduct inspections and certification to ensure compliance.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><strong>Early Industry Response and Challenges<\/strong><\/h2>\n<ul>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Industry stakeholders have welcomed the move, viewing it as a <\/span><b>positive beginning for India&#8217;s maritime manufacturing ecosystem<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">According to the Ship Recycling Industries Association (India), around 119 ships were recycled in the country during FY26, accounting for nearly one-third of global ship recycling activity by number of vessels.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, India processed only around <\/span><b>13% of recycled tonnage globally<\/b><span style=\"font-weight: 400;\">, indicating that the country still mainly handles relatively smaller ships.<\/span><\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Experts argue that while the scheme is promising, success will depend on:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Faster implementation of digital credit note systems<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Simplified approval processes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Expansion of domestic shipbuilding capacity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Availability of skilled maritime labour<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400; text-align: justify;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A major concern highlighted by industry representatives is India\u2019s current inability to build many large commercial vessels domestically, which may initially limit utilisation of the credit note scheme.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/www.thehindubusinessline.com\/economy\/logistics\/credit-note-buoys-up-ship-recyclers\/article71102171.ece\" target=\"_blank\" rel=\"nofollow noopener\">Hindu<\/a> | <a href=\"https:\/\/infra.economictimes.indiatimes.com\/news\/ports-shipping\/govt-grants-first-ship-recycling-credit-note-to-bella-shipping-for-capesize-carrier-scrapping\/131408747\" target=\"_blank\" rel=\"nofollow noopener\">ET<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s ship recycling sector receives a boost through a new credit note scheme aimed at promoting green ship recycling and shipbuilding.<\/p>\n","protected":false},"author":21,"featured_media":108245,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,8138,22,59],"class_list":{"0":"post-108234","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-ship-recycling","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs-tag","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/108234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=108234"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/108234\/revisions"}],"predecessor-version":[{"id":108252,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/108234\/revisions\/108252"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/108245"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=108234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=108234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=108234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}