ShipRecycling:: Salient features of new "Ship Recycling Regulation

11 March 2011

Initial permission for five years with a provision for renewal for further period of 10 years subject to fulfillment of all terms and conditions.
Revival package for five years i.e. 1/10/2004 to 30/09/2009

Minimum LDT 10,000 for five years instead of previous 10000 LDT per year
Market rate premium is Rs. 400/- per sq.m. 50% relaxation is given. Accordingly, premium/development fees fixed @ Rs.200/- per sq.m. per year.

GMB shall reserved 10 plots admeasuring 60M x 45 M. for giving for recycling activities on ship to ship basis.
Amalgamated plots pursuant to policy circular dtd. 4/10/2002 has been regularized subject to payment of development charges @ Rs.500/- per sq.m. per year from the date of grant of permission till 30/9/04.
The permission holders belonging to SC/ST category under Regulations 1994 shall be permitted to continue to hold permission under these Regulations, if such permission holders shall pay all outstanding dues along with the interest @ 8% per annum.
Rate of plot rent penalty has been reduced. Previously there was a 25%, 50% and 100 % rate of penalty . In new policy permission holder shall have to pay penalty at the rate of prevailing Prime Lending Rate (PLR) along with compound penal interest calculated at the rate of 4% per annum.
Ship Recycling (LDT) charges has been reduced from Rs.108/- to Rs.100/-.
As one time measure under new policy free change in status, constitution, partners, directors etc. of the permission holders is allowed. Thereafter, transfer fee @ Rs. 400/- per sq.m. will be charged.
Existing permission holder can apply for another plot by tender cum auction, which was restricted in previous policy.
VC & CEO shall convert the existing smaller size plots admeasuring 30 M. x 45M. into bigger size of plots.
There is a provision for housing colony for workers.
In case of fatal accident, penalty rates reduced.

Source: Gujarat Maritime Board website.

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