Alang is Asia’s largest ship breaking yard which is situated in Bhavnagar district (Gujarat).
The journey of ship breaking in Alang began way back in 1983 with 5 ships of just about 0.02 MnT Light Displacement Tonnage (LDT) and now it has grown over 394 ships of about 3.85 MnT LDT in FY13. In the past 5 years, Alang ship breaking yard has grown more than double in terms of LDT. Today, the industry has directly employed around 50,000 workers and many thousands are involved indirectly.
According to statistical data, India, Bangladesh and Pakistan contributed nearly 67 per cent share of the total global ship recycling. Similarly, China contributed 21 per cent and the remaining 12 per cent was from other countries. All figures in terms of LDT.
In H1 FY14, Alang ship yard carried about 145 ships for breaking, adding a LTD of about 1.55 MnT. The breaking was down by 6 per cent as compared to 177 ships [a total of 1.65 MnT LDT] received in H1 FY13. The total operative plots at present are about 140, out of which only 80 are operational because of low ship purchases. Following are the reasons for decline of Ship imports in Alang.
- Poor steel demand in the domestic market
- In H1 FY14, Indian currency depreciated by about 16 per cent against the USD. INR touched an all time low of 68.8/USD in the month of August’13.
“Alang ship breaking, like the Indian steel industry, is also facing tough challenges since the last couple of years. Dollar has impacted badly & heavily especially in the current fiscal. As a consequence, ship breaking industry is operating at 50-60 per cent compared to last fiscal”, said Mr. Nitin Kanakiya, Hon. Secretary, Ship Recycling Industries Association, India.