Cabinet Committe on Economic Affairs (CCEA) has approved a proposal for the accession to the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, 2009, reports the Economic Times.
By joining the convention, India would become the 14th country to join the International Maritime Organization (IMO) treaty.
The most recent member of the treaty is Germany, which joined in July this year.
Authorization of ship recycling facilities
Under the bill, ship recycling facilities are required to be authorized and ships shall be recycled only in such authorized ship recycling facilities.
The bill also provides that ships shall be recycled in accordance with a ship-specific recycling plan. Ships to be recycled in India shall be required to obtain a Ready for Recycling Certificate in accordance with the HKC.
When the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, 2009 comes into force, its provisions will be implemented under the provisions of the Recycling of Ships Bill, 2019, the Indian government said.
India is at the forefront of the global ship recycling industry, with a share of over 30% of the market.
People health and safety – A major concern
Anil Sharma, CEO of cash buyer GMS, says, “With this giant step, the Indian government has ensured that not only on the micro-end, will the industry continue to operate while keeping worker health and the safety of the environment at heart.“
“But on the macro-end, a growing number of ship owners seeking SoC based green-recycling options can be certain that the authorities have added another layer of security for their incoming vessels,” he commented.
“As a result, this bill eases the restrictions on non-EU yards that are currently imposed by the EUSRR.”
“India was always the key to unlocking Hong Kong Convention’s entry into force and after a number of years waiting for India’s ship recycling industry to mature and embrace the technical standards of the Convention,” Nikos Mikelis, non-executive director of GMS, added.
He also said, “Having witnessed that remarkable transformation, it is now most rewarding to receive news that India’s Cabinet has adopted the Convention as India’s own standard.”
“It now only remains for Parliament’s both houses to review and pass the new bill before India’s President signs India’s accession to the Hong Kong Convention.”
Huge annual gross tonnage
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 industry being largely concentrated in South Asia, India remains the leading market for ship-wrecking globally, with the Alang-Sosiya ship breaking yard in Gujarat handling around 450 ships every year.
Sitharaman said that the move will allow global funds to come and invest in ship-recycling centres in India.
“A lot of international agencies are also looking at India’s high-class recycling centres,” Sitharaman said.
“By this accession, we hope to get better assistance from these international agencies which are wanting to fund (ship recycling centres),” she added.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: The Economic Times
