The Indian ministry of shipping looks to attract more ships that at the end of its operational life to its ship-breaking yards.
India might be the next country in line to adopt the Hong Kong Convention for ship-recycling, as per a report by Economic Times.
The report noted that India is considering passing a new law that aligns its current policy on the scrapping of ships to global standards, which are more environment friendly.
The Convention is open for accession by any nation. But it will enter into force 24 months after at least 15 states have ratified the convention, which represents 40 percent of world merchant shipping by gross tonnage. As of July 2019, 13 countries have ratified it.
The Hong Kong Convention was adopted at a conference held in Hong Kong in May 2009 with inputs from the International Maritime Organisation (IMO). The convention covers the design, construction, operation and preparation of ships to facilitate safe and environmentally sound recycling, as per IMO standards.
In 2018, India handled 5 million gross tonnage (MnGT) amounting to 25 percent of the world’s ship recycling industry as per the report. The Indian ministry of shipping looks to attract more ships that at the end of its operational life to its ship-breaking yards. India plans to double its capacity by 2024.
Alang-Sosiya ship-breaking yard in Gujarat already hands around 450 ships every year. Since the ship-breaking activities began there in 1983, more than 7,000 vessels have been recycled at Alang.In February this year, the Indian National Shipowners' Association (INSA) had stressed on the need for the ratification of Hong Kong Convention. While countries like Turkey and Germany have already ratified the convention, India, which has Asia's biggest ship-wrecking yard, was waiting to get onboard.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.