In a bid to resuscitate the critically ailing Alang-Sosiya Ship Recycling Yard, the Gujarat government has drawn out a blueprint to restore the once thriving facility. The Gujarat Maritime Board’s move of modernisation and expansion of the yard is aimed at strengthening the yard’s position as a globally competitive and environmentally sustainable ship recycling hub.
Hareet Shukla, principal secretary of Ports and Transport, told FE that Phase I of the project proposes the development of nine ship-recycling plots—5 plots of 300 m × 215 m and 4 plots of 240 m × 215 m—together with the common infrastructure at an estimated cost of about Rs 520 crore.
With Alang betting its future on the next wave of recycling, the proposed expansion aims to strengthen Alang’s competitiveness and preparedness for future recycling demand. Phase I of the Master Plan is expected to add about 4.5 million LDT per annum of additional recycling capacity, effectively doubling Alang’s present capacity from about 4.5 million LDT to 9.0 million LDT per annum.
The Detailed Project Report (DPR) for Phase I has been finalised. The processes for land acquisition and obtaining Environmental Clearance (EC) and Coastal Regulation Zone (CRZ) approvals are presently underway. Phase I also envisages providing approximately 88 hectares of additional land for expansion and supporting infrastructure.
Shukla said currently the yard comprises 150 plots, of which 128 plots are presently allotted to ship recyclers. Owing to the prevailing downturn in the global ship recycling market and limited availability of end-of-life vessels, approximately 35–40 plots are presently operational.
The expansion will also support implementation of the Hong Kong International Convention for the safe and environmentally sound recycling of ships, a global treaty adopted in May 2009 that entered into force on June 26, 2025.
Addressing Market Slowdown
Vessel recycling volumes are influenced by global factors such as availability of end-of-life vessels, freight markets, steel prices, and economic conditions. Haresh Parmar, secretary of the Ship Recycling Industries Association, said the neighbouring countries too face a similar situation due to economic slowdown across the world.
According to him, however, one of the biggest reasons for a smaller number of vessels being purchased for dismantling is that after 2015-16, the manufacturing of TMT bars directly from the plates in the ships is not allowed by the Bureau of Indian Standards (BIS). “The plate is first scrapped, then made into a billet, which in turn is turned into a TMT bar. This increases the costing by Rs. 5,000 per metric tonne,” he said. Despite the prolonged slowdown, the industry is pinning its hope on a revival that it believes could begin any time now.
Last year in June, the BIMCO Ship Recycling Alliance, which promotes safe dismantling standards, came out with a report that over 16,000 ageing ships will require recycling globally over the next decade. The average age of bulk carriers and container ships is 25 to 30 years, and that of the passenger cruise ships is 30 to 40 years.
As the number of vessels coming to Alang has dwindled over the years, it has also led to a large number of workers having to find jobs in their native areas or elsewhere in Gujarat for months together when they do not have a vessel where they can work.
None except for administrative staff or clerical staff are regular employees, said Vidyadhar Rane, general secretary of the Alang Sosiya Ship Recycling and General Workers Association. According to him, an estimated 8,000 workers work in Alang, and a majority of them take up other jobs when there are no ships to be dismantled.
According to official information, year on year, the number of vessels arriving at Alang has decreased. In 2021-22, the number was 209, followed by 131 in 2022-23, 125 in 2023-2024, 113 in 2024-2025, and 24 this year up to June. The year 2025-26 saw 119 vessels coming.
India’s Global Market Leadership
India accounted for approximately 35% of the global ship-recycling market in terms of Gross Tonnage (GT) during 2025, making it the leading ship-recycling nation in the world.
Alang-Sosiya Ship Recycling Yard caters to about 98% of India’s ship recycling activity. Shukla said about 89% of the operational plots at Alang had already achieved compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (HKC), before its entry into force in June 2025. Additionally, 31 ship recycling yards have also applied for EUSRR certification.
“Compliance of HKC, EUSRR certification, and doubling of the capacity will bring business. The expansion is being planned in advance,” Parmar pointed out.