Indian Ship Recycling capacity to double by 2024

While presenting the Union Budget 2021-22 in Parliament, the Finance Minister Nirmala Sitharaman said ship recycling capacity will be doubled by 2024, and this in turn, will generate 1.5 lakh jobs.

India has enacted Recycling of Ships Act, 2019 and acceded to the Hong Kong International Convention. Ms Sitharaman said post-enactment of the law around 90 ship recycling yards at Alang in Gujarat have already achieved HKC-compliant certificates.

Welcoming the schemes proposed by Ms Sitharaman for the shipping sector, Mr Anil Devli, CEO, Indian National Shipowners’ Association (INSA) expressed, “INSA welcomes the incentive scheme proposed by the Hon FM, which supports the Indian flag ships in global tenders. This will lead to investment in the Indian flag ships which in turn will provide economic contribution to the GDP of the Indian economy in many ways.

Indian ships employ Indian crew, underwrite their H&M in India, use Indian facilities for ship repair, Indian surveyors, lawyers and bankers. But the two most important things that Indian flag shipping brings to the table is the training for cadets and the massive saving in foreign exchange.

It is estimated that about USD 50 billion is sent out of India as freight and other charges to foreign shipping companies. Even if we can save 10% of this, we would save a whopping 5 billion.”

On encouraging Indian flag ships and boosting recycling, Mr Amar Singh Thakur, General Secretary, The Maritime Union of India (MUI) said, “7 major ports will see their operations privatized in the year 2021-22.

To encourage having more Indian flag ships, a subsidy scheme of Rs 1624 Crores over a period of 5 years for shipping companies has been announced to enable better training and employment opportunities for Indian seafarers.

In regards to Union budget 2021 The Maritime Union of India has approached the government for formation of a seafarers support fund and substantial allocation of funds to it.

As far as NRI status for the seafarers is concerned, MUI is continuously pursuing matters with the government of India.”


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