This development comes in the wake of ongoing coordinated efforts between the Centre and the Gujarat government to further enhance the capacity of Gujarat's Alang Ship Breaking Yard. As part of this effort, the Central government plans to relax the restrictions of the BIS norms to link ship recycling with the steel industry.

In the Union Budget 2025-26, the Shipbuilding Financial Assistance Policy (SBFAP) was revamped and announced, centred on a ₹25,000 crore Maritime Development Fund. A year on, the next budget is approaching, and there are expectations galore, with deliberations on circular economy and sustainability push making headlines.  

To strengthen safety, environmental compliance, and global-best practices in India's ship recycling industry, the Union Ministry of Ports, Shipping, and Waterways announced the Ship Recycling Regulation 2026. This has had a direct impact on activities at the Alang yard. Since these new regulations are aligned with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, obstacles hindering Alang's development can be effectively addressed

An official of the Ports Department

Against this backdrop, the coordinated efforts at the Alang Ship Breaking Yard, which is widely recognised as the world's largest ship recycling and breaking facility, will benefit from a revised recycling policy. Annually, about 150 old ships from various countries are recycled at the yard, according to an official. 

Hong Kong Convention

Spread across a 14-km coastline, Alang has more than 180 ship-breaking sites. So far, more than 8,800 ships have been safely recycled at Alang, and 99% of the material recovered has been reused. Ever since the Hong Kong Convention (HKC) came into effect globally in June 2025, Alang has been gaining recognition as one of the world's most reliable green recycling centres.

"As per the plan, over the next 10 years, 15,000 ships will be recycled at Alang, increasing the current ship-recycling capacity from 4.5 million LDT [Light Displacement Tonnage] to 9 million LDT. Policy-level reforms are being undertaken to make this possible," the official said.

Welcoming the decision to relax BIS restrictions, Ramesh Mendapara, vice-president of the Ship Recycling Industries Association, said that the decade-old rules issued by the State government should also be revised with a long-term perspective.

EU Ship Recycling Regulation

According to the Indian Steel Scrap Association, in addition to improving the workers' welfare, the State government must ensure strict compliance with HKC standards and secure Alang's inclusion in the approved list of the EU Ship Recycling Regulation (SRR).

To enhance the yard's capacity, the Gujarat Maritime Board (GMB) has prepared a 10-year master plan, and the Central government is considering relaxing restrictions of the Bureau of Indian Standards (BIS) to link ship-recycling with the steel industry. 

Vision Document

According to a GMB official, the State government has prepared a vision document to pave the way for training institutes, a multi-speciality hospital (Level-3) for workers, a trauma centre, and advanced waste management systems.

Work is also underway to upgrade a treatment, storage, and disposal facility (TSDF) site. 

Besides Alang, ship-breaking and recycling activities are generally carried out at the Kolkata Port, the Mumbai Port, and in Kannur in Kerala.