- In a bid to revitalize and enhance operations, the Gujarat government is formulating a master plan for the Alang ship-breaking yard, situated on the Gulf of Khambhat coast.
- The Gujarat Maritime Board (GMB) official revealed plans to add 50 plots to the existing 153 at Alang, contributing to a new master plan for the entire region in Bhavnagar district.
- This expansion is expected to double Alang’s ship recycling capacity from 4.5 million light displacement tonnage (LDT) to 9 million LDT.
Current Operations
Presently, Alang can recycle 400-450 ships annually, generating approximately 3.5 million tonnes of steel from the recycling of around 200 ships.
Phased Expansion
The phased expansion will involve regulatory adjustments to attract more ships to Alang in the initial phase. Subsequently, the implementation of the new master plan will introduce additional ship-breaking plots, fostering increased productivity.
Plot Details
The existing 153 plots at Alang extend along a 10-km stretch of the beach, with 131 operational plots. The government’s plan involves acquiring land in the nearby Mathavada village to create 50 new plots for the ship-breaking yard.
Challenges and Decline
Despite these expansion initiatives, workers at Alang highlight a decline in business since 2011-12. Ship-breaking activities dropped from 415 ships with 3.8 million LDT for recycling in 2011-12 to 137 ships in 2022-23.
Contributing Factors
Factors contributing to this decline include heightened competition from ship-breaking yards in Bangladesh and Pakistan and increased charges imposed by GMB.
Future Outlook
The master plan and expansion phases aim to address these challenges, ensuring Alang’s sustained growth and competitiveness in the ship-breaking industry.
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Source: The Hindu Business Line