He said that, at present around four ships are being scrapped during a week. Most of them ar cargo and container vessels. Some time cargo vessels of 300 odd ships are coming for the scraping and the demand is increasing. As the scrapingactivity picked up, the ailing ancillary industry of oxygen plants also get a fresh lease of life. Prices of oxygen gas spurted by Rs 6 to Rs 16 per cubic meter thanks to deficit of cylinders. With the upturn in the economy and increase in the off take of the steel, rerolling industry also recovering from the sorry state, said an analyst.

The Alang has strategic locations advantage. Ships can be brought up in the floating position to right at the work place. No other place in the world has such a natural sea shore. Scraping could be carried out on the floating positions, making it one of the most competitive yard. Oriya and Bihari workers are considered expert in the ship breaking. The ships coming range from 7000 tonne to 35000 tonne. Most are cargo vessels, however some time warships also arrive. Passenger liners hardly comes. It takes one or one and half a day to dismantle a normal 10000-13000 tonne ship.

The ship breakers normally deals with the leading brokers, who gives indicative quote. Prices ofthe ships depend upon the usage, user and the builders. It's like buying a second-hand car. If the ship comes from the reputed fleet, it fetches good price as it would be well maintained. The seller provides details like ship builder, owner, manufacturing date and make of engine. The miscellaneous details, what and which articles, the ship containers are not given. The buyer has to take some type of speculative risk.

Once the deal struck, buyers open the Letter of Credit with overseas banks. Most of the buyers usually hedge their foreign exposure. Earlier some ship breaker were tend to keep their exposure open to save on the forward premium, but some of them lost heavily due to unusual spike in the exchange rate in the recent years, so most of them prefer to be `covered', said Himanshu Patel.

All deals are dollar denominated. It can be denominated in Euro or Yen or British Pound, and may become more profitable in Euro or Yen but most of the ship breakers may not be aware about such opportunities, said aleading forex analyst. If banking services and infrastructure improve, revenue of the state as well as industry woud increased. Despite contribution of Rs 500-700 crore toward central and state exchequer, road, communication and health facility ar very poor. Being a one of the largest revenue garner, Alang needs much good treatment, said a leading ship breaker.

A vast market of the used white goods is developing as an ancillary industry as the ships which are coming for the breakage are full of crockery, refrigerators, washing machines and furniture. Most of this articles could be bought at through away prices, provided he or she has some basic knowledge and good bargaining ability. At present, such used white goods, removed from the ships seen lying on the various surrounding plots.

Though the market is large, it is unorganised. Selling rates lack standards. Considering the size and volume of the business, it could be developed in a organized manner. Residents of surrounding areas used to buy importedgoods from the Alang. It takes few days and a little over Rs 50000 to furnished entire house from the articles obtained from this luxury garbage.