Ship Recycling in India: Regulatory Transformation and Global Leadership

Key Highlights:

• India became the world’s leading ship recycling nation in 2025, achieving the Maritime India Vision (MIV) 2030 target five years ahead of schedule.
• India's global market share in ship recycling increased from 30.1% in 2024 to 35.4% in 2025, with recycling volume growing by nearly 60%.
• The Alang-Sosiya cluster in Gujarat is the world's largest ship recycling hub, accounting for approximately 98% of India’s capacity.
• India's ship recycling framework is aligned with the Hong Kong International Convention (HKC), supported by the Ship Recycling Act, 2019, Ship Recycling Rules, 2021, and Ship Recycling Regulations, 2026.
• The Ship-breaking Credit Note Scheme incentivizes recycling at compliant Indian yards and new vessel construction in India.

Detailed Insights:

• The sector's evolution into a modern, internationally aligned industry emphasizes compliance, sustainability, and worker safety.
• Ship recycling is crucial for India's resource security by providing ferrous scrap for the domestic steel industry, reducing import dependence.
• It supports a circular economy by recovering steel and other materials, requiring less energy than primary steel production.
• The sector generates large-scale employment and sustains ancillary industries, aligning with Make in India and Atmanirbhar Bharat initiatives.
• Alang-Sosiya has an annual recycling capacity of around 6 million Gross Tonnes (GT) and produces about 3.50 million metric tonnes (MMT) of steel annually.
• India aims to nearly double its ship recycling capacity to about 9 million Light Displacement Tons (LDT) through planned development of the Alang yard.
• The Safety Training and Labour Welfare Institute at Alang-Sosiya has trained over 1.5 lakh workers in occupational safety and hazardous material handling.
• Indian ship recycling yards have undergone major upgradation, including impermeable working surfaces, mechanised equipment, and segregated hazardous waste storage.
• The Directorate General of Shipping is designated as the National Authority under the Ship Recycling Act, 2019.
• The Inventory of Hazardous Materials (IHM) ensures transparency and risk mitigation by identifying hazardous substances on ships before recycling.
• The recycling of Ex-INS Viraat at Alang showcased India's capabilities in environmentally responsible ship recycling.

Key Concepts Involved:

• Hong Kong International Convention (HKC): The principal international instrument governing safe and environmentally sound ship recycling.
• Ship Recycling Act, 2019: India's primary legal framework for regulating ship recycling, giving domestic effect to international standards.
• Inventory of Hazardous Materials (IHM): A document identifying and recording hazardous substances present on ships for safe recycling.
• Maritime India Vision (MIV) 2030: A strategic plan outlining the Indian government's goals for the maritime sector, including ship recycling.
• Ship-breaking Credit Note Scheme: An incentive scheme encouraging ship recycling at compliant Indian yards and new shipbuilding in India.