Economy News


Written by Talent KAS

Related Topic in KAS Prelims Syllabus:   

Economy [Paper-II]: Infrastructure in Indian Economy, Ports


  • Parliament passed “The Recycling of Ships Bill 2019’’ for Safe and Environmentally Sound Recycling of Ships in India.

About the Bill

  • It provides for the regulated recycling of ships, which is in accordance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 adopted by the International Maritime Organisation (IMO).
  • It lays out rules for existing facilities and is applicable to all ships registered in India or entering Indian waters, apart from warships and other government ships.
  • The Bill seeks to restrict the use of hazardous material on ships and regulates the recycling of ships by establishing a National Authority.
  • It defines ship recycling as dismantling it at a facility to recover the components and materials for reuse and taking care of the hazardous material so produced.
  • Under the legislation, every ship recycler must ensure safe and environmentally sound removal and management of hazardous materials from a ship.
  • On the violation of these provisions, the ship recycler will be liable to pay environmental damages and cleanup operation compensation as prescribed.


  • India’s 7,500-km-long coastline gives the opportunity to expand ship-breaking facilities, which would lead to creation of jobs.
  • India accounts for 30% of the breaking that happens currently, with 300 ships being recycled here every year. 99% of recycling happens in Gujarat’s Alang ship-breaking yard.
  • As per data available for 2018, India handles around five million gross tonnage (MnGT) annually, which is around 25% share of the world’s ship recycling industry.
  • The government plans to nearly double this by 2024, at around nine MnGT.
  • The new legislation will ensure environment friendly recycling process of Ships and adequate safety of the yard workers.

[Source: The Hindu, All India Radio, Economic Times]


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Talent KAS

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