Panic started to engulf the industry this week with news of a Supreme Court order banning the import of ships containing hazardous/toxic wastes (as identified bv and fit under the BASEL Convention) that have not been cleared bv their respective owners.
As stated in the Market commentary, even though hazardous materials inventories are mandated prior to arrival of anv vessel for recycling into India, many are now uncertain how far these new orders will go towards preventing the import of new vessels for beaching.
As a result, the inward clearance of vessels on Friday July 6,h, was immediately halted.
It is now understood that those vessels already cleared for beaching and those arriving and completing inward clearance before July 19, will face no delays. However, those due to arrive after the hearing on July 19 will only learn their fate after more claritv on the order is forthcoming.
Meanwhile, the Gujarat Maritime Board Chief Secretary, Mr A. K Joti has urged the Environment Ministry to revise the order, so as to prevent strangling an industry that will not only start to lose out, as the playing field favors competing nations, but also has suffered considerably due to the ongoing currency crisis this year.
Mr Joti went on to say that, considerable investment had already been made to bring the yards of the largest ship recycling centre in the world, up to standards, to ensure there remained "trade and employment opportunities for Indian citizens".
Notwithstanding, rival markets Pakistan, Bangladesh, China and Turkey will no doubt be on hand to snap up any of the immediate excess, but there is still some way to go before any definite closure or deferral in ship recycling in India can be declared.
Source: steel guru. 11 July 2012http://www.steelguru.com/indian_news/GMS_weekly_report_on_India_ship_breaking_industry_for_WEEK_27_2012/272806.html