18 January 2016

Gujarat govt announces Ship Recycling Policy 2015

The Government of Gujarat has today announced ship recycling policy – 2015. The new policy shall be reviewed after three years period. The policy aims to revive the ship recycling industry at Alang ship breaking yard in Bhavnagar district which is at present witnessing slowdown.

Some of the salient features of new policy according to spokesperson minister Saurabh Patel are following:
– Plot usage period proposed to be extended from existing five years to ten years.

– Plot development/premium charge Rs 270 per square meter

– Plot rental Rs 80 per square meter

– LDT(Light Displacement Tonnage) charges fixed at Rs 135 per LDT. Calculation of LDT charges to be made considering market up-down, global rates of purchase of ships and local steel index.

– Relaxations in matters such as increasing or reducing the width of length of plot, merger or realignment of plots for increased efficiency and smoother ship movement.

It should be mentioned that ship recycling is environment friendly industrial activity which not just produces re-rollable steel but also provide direct and indirect employment. 1-2% of total demand of steel in India is contributed by ship recycling activity.

Alang has 10 km long sea shore with presence of 167 plots that are give on lease by Gujarat Maritime Board. Ship breaking activity kicked off here in year 1983, and so far over 7,000 ships are recycled which has produced 54 million LDT steel.

Source: 18 January 2016

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