National Authority of Ship Recycling

Why in NEWS ?

• A National Authority of Ship Recycling will be set up at Gandhinagar Gujarat, to overlook activities related to ship recycling, in a move that may dent the hold of the state-controlled Gujarat Maritime Board (GMB) over Alang, which accounts for over 95% of the total ships recycled in India.

ABOUT

• The decision came after the central government notified the Director General of Shipping as the National Authority for Recycling of Ships under Section 3 of the Recycling of Ships Act, 2019, stated an official release from the Press Information Bureau on October 15 th 2020.
• DG Shipping will be the final authority for various approvals, required by the ship recycling yard owners and the state governments.
• As an apex body, DG shipping is authorised to administer, supervise and monitor all activities related to ship recycling.
• DG Shipping will look after sustainable development of ship recycling industry, monitoring the compliance to environment-friendly norms and safety and health measures for stakeholders working in the ship recycling industry.

Ship Recycling in India

• India is the leader in the global ship recycling industry, with a share of over 30% of the market.
• As per UNCTAD report on Review of Maritime Transport, 2018, India had demolished 6323 tonnes in 2017, of known ship scrapping across the world.
• The ship-recycling industry is a labour-intensive sector, but it is susceptible to concerns on environmental safety.
• Last year, the Parliament had passed The Recycling of Ships Bill, 2019 which talked about setting up of a national authority that will monitor all activities related to ship recycling.

The Recycling Of Ships Act, 2019

• The government decided to accede to the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships, 2009 on 28th November, 2019 and on 13th December, 2019, the Recycling of Ships Bill, 2019 became act.
• When the Hong Kong International Convention comes into force, its provisions will be implemented under the provisions of the Recycling of Ships Bill, 2019 and rules and regulations framed there under.
• Objective: To provide a boost to the ship-wrecking industry in India.
• Regularising Ship Recycling Industry: The bill will help to provide for the regulation of recycling of ships by setting certain international standards and laying down the statutory mechanism for enforcement of such standards.
• The bill will help to provide for the regulation of recycling of ships by setting certain international standards and laying down the statutory mechanism for enforcement of such standards.

Salient Features

I. Authorization of Recycling Facilities

• Under the Bill, ship recycling facilities are required to be authorized and ships shall be recycled only in such authorized ship recycling facilities.

II. Ship-Specific Recycling Plan

• The Bill also provides that ships shall be recycled in accordance with a ship-specific recycling plan. Ships to be recycled in India shall be required to obtain a Ready for Recycling Certificate in accordance with the Hong Kong Convention (HKC).

III. Restriction on Hazardous Material

• It restricts and prohibits the use or installation of hazardous material, which applies irrespective of whether a ship is meant for recycling or not. Ships shall be surveyed and certified on the inventory of hazardous material used in ships.

IV. Grace Period for Existing Ships

• For new ships, such restriction on use of hazardous material will be immediate, that is, from the date the legislation comes into force, while existing ships shall have a period of five years for compliance. However, restriction on use of hazardous material would not be applied to warships and non-commercial ships operated by Government.

What is Hong Kong convention?

• The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (the Hong Kong Convention), was adopted at a diplomatic conference held in Hong Kong, China in 2009.
• It was adopted by the International Maritime Organization (IMO) in 2009.
• The Convention is aimed at ensuring that ships, when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety and to the environment.
• It also addresses concerns raised about the working and environmental conditions at many of the world’s ship recycling locations.
• The Convention is yet to come into force because it has not been ratified by 15 nations, representing 40% of the world merchant shipping by gross tonnage (capacity) and a maximum annual ship recycling volume of not less than 3% of the combined tonnage of the countries.