According to sources in the Shipping Ministry, the ship breaking industry, so far under the Steel Ministry, has now come under the control of the Shipping Ministry. This will help the sector attract more ships to Indian yards, including the world’s largest Alang in Gujarat and get marketed well at international shipping forums.

Logically, the ship-breaking industry should be with the Steel Ministry, as once the ship beaches there is no role for the Shipping Ministry.

According to Mr Nitin Kanakiya, Secretary, Ship Recycling Industries Association (India), however, to bring in the ships, the role of the Shipping Ministry is vital in terms of regulations and sops.

Mr Kanakiya said that “We need good visibility and the shipping fraternity can provide this at international forums.”

The industry provides direct employment to nearly 40,000 people and earns annual revenues of around INR 2,500 crore. However, it is not in a healthy state due to competition from neighbouring countries and ‘bad press’.

The first thing that the Shipping Ministry did was to constitute an inter-ministerial ship breaking scrap committee. It notified it on July 22 to consider all issues related to the industry. Sources said that the ministry plans to seek the help of Japan International Cooperation Agency to upgrade the existing infrastructure at Alang. A plan will be prepared to modernize the Darukhana ship-breaking facility in Mumbai port. This is one of the 15 major projects taken up under the ministry’s comprehensive action plan.