India is set to invest ₹20,000–25,000 crore to modernize and expand the Alang ship recycling yard in Gujarat, with the aim of increasing its share of the global ship recycling market from 35.4% to nearly 50% over the next decade.
The proposed investment will nearly double Alang’s recycling capacity from 4–4.5 million light displacement tonnes (LDT) to around 9 million LDT through infrastructure upgrades and yard expansion. The Gujarat government is expected to contribute over ₹1,000 crore, while the Centre and private recyclers will fund the remaining investment. Projects will also be eligible for financing under the ₹25,000-crore Maritime Development Fund (MDF).
The expansion is being driven by the implementation of the Hong Kong International Convention (HKC), which came into force this year. Currently, 115 of Alang’s 128 ship recycling plots are HKC compliant, and 34 yards have applied for certification under the European Union Ship Recycling Regulation (EU-SRR), a key requirement for dismantling many European-owned vessels.
The government expects the modernization to increase India’s annual ship recycling capacity from 500–600 vessels to 1,000–1,200 vessels, with Alang projected to recycle around 16,000 ships over the next decade. Industry experts believe the investment, combined with stronger environmental and safety standards, will strengthen India’s position as the world’s leading green ship recycling destination.