SYLLABUS
GS-3:Infrastructure: Ports.
Context: India emerged as the world’s leading ship recycling nation in 2025, achieving a key target under the Maritime India Vision (MIV) 2030 five years ahead of schedule, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD).
Key Findings of the Report
- According to the latest report, India’s share of global ship recycling increased from 30.1% in 2024 to 35.4% in 2025.
- Ship recycling volume in India rose by nearly 60%, from 1.86 million Gross Tonnes (GT) in 2024 to 2.99 million GT in 2025.
- India has become the world’s top ship recycling nation, surpassing all other countries in global ship recycling activity.
- The target of becoming the world’s leading ship recycling nation under Maritime India Vision 2030 has been achieved five years ahead of schedule.
- According to the Baltic and International Maritime Council, over 16,000 vessels are expected to be recycled globally during the next decade.
- With its present market share, India is expected to recycle approximately 500–600 ships annually in the coming years.
Indian Government Initiatives
- Recycling of Ships Act, 2019: Enacted to align India’s ship recycling ecosystem with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
- India ratified the HKC in 2019.
- Aims to ensure environmentally sound and safe ship recycling practices.
- Modernisation of Ship Recycling Yards: Financial assistance of ₹53.5 crore was provided for yard modernization.
- Helped 115 ship recycling facilities become HKC-compliant.
- Ship-breaking Credit Note Scheme: Ship owners receive a credit note equal to 40% of the scrap value of a recycled ship.
- The credit note can be used for payment of up to 5% of the value of a new vessel built in an Indian shipyard.
- Promotes both ship recycling and domestic shipbuilding.
- Inclusion in EU-Approved Recycling Facilities List: The government is pursuing the inclusion of Indian ship recycling yards under the European Union Ship Recycling Regulation-approved list.
- Continuous engagement is underway with European authorities to facilitate approvals.
- Expansion of Alang Ship Recycling Yard: Planned expansion of Alang Ship Recycling YaArd.
- Target to increase national recycling capacity to around 9 million Light Displacement Tons (LDT).
- The Gujarat Government has prepared a comprehensive master plan to improve infrastructure and meet future demand.
- Maritime India Vision (MIV) 2030: Launched in 2021 by the Ministry of Ports, Shipping and Waterways as a roadmap to make India a leading global maritime nation.
- Focuses on port modernization, shipping, shipbuilding, inland waterways, logistics efficiency, sustainability, and employment generation.