India is accelerating the expansion of its ship recycling industry and upgrading shipbreaking yards to comply with European environmental standards, as part of a broader push to strengthen the country’s maritime sector and reduce logistics costs, according to Sushant Kumar Purohit, Chairperson of the V.O. Chidambaranar Port Authority.
Speaking at a roundtable conference on “Future of India’s Shipbuilding and Ship Recycling: Decoding Budget Announcements to Power India’s Maritime Future” organised by the PHD Chamber of Commerce and Industry, Purohit said India’s ship recycling industry—currently concentrated in Gujarat—already ranks among the largest globally. However, European shipowners can only send vessels to recycling yards that comply with strict environmental and safety standards.
“Ship recycling is happening in Gujarat now, and it is currently one of the largest globally. However, European shipowners cannot send their vessels to India or Bangladesh unless the yards comply with European standards. That is why more shipbreaking yards are being upgraded to be Euro-compliant,” Purohit said.
He noted that strong government support is driving the transition, and several more shipbreaking facilities are expected to meet European compliance norms within the next three to five years. Sustainability and green operations are becoming central to India’s maritime strategy, he added.
India’s maritime ambitions are also being reinforced by policy support and budgetary allocations, including the proposed ₹25,000-crore Maritime Development Fund aimed at strengthening shipbuilding capacity, research and innovation, and skill development. Currently accounting for just 0.06 percent of global shipbuilding capacity, India aims to attract greater private sector participation and position itself as a major global shipbuilding hub.
The port city of Thoothukudi—home to the V.O. Chidambaranar Port Authority—is emerging as a key green maritime hub in southern India. Purohit highlighted the port’s advantages, including all-weather operations, minimal dredging requirements, ample land availability, strong connectivity, and extensive use of renewable energy.
According to him, the port already operates entirely on solar and other renewable power sources, with additional green energy capacity being added to further move towards carbon-neutral operations.
The government is simultaneously promoting inland waterways and coastal shipping, including the construction of vessels for river transport and the development of cruise tourism along India’s eastern and southern coasts. Recent initiatives include a new cruise terminal in Mumbai and plans to expand river cruise tourism to boost both passenger and cargo movement while lowering logistics costs.
Purohit also emphasised the growing role of technology in port operations. “In the port sector, we are adopting a three-pronged approach—efficient cargo handling, green initiatives and pollution control, and AI and IT interventions to make operations user-friendly and reduce costs,” he said.
Ship recycling, he noted, also supports a circular economy by enabling the recovery of secondary steel from decommissioned vessels, which can be converted into primary steel while supporting carbon credit mechanisms and emerging technologies such as carbon capture, utilisation and storage (CCUS).
Expanding ship recycling infrastructure across southern and eastern ports could also drive regional employment and industrial development.
At V.O. Chidambaranar Port Authority, container cargo volumes are growing at around 10 percent annually. The port recently expanded its container handling capacity from 1.2 million TEUs to 8 million TEUs in February 2026, while planned projects such as the Outer Harbour expansion are expected to add another 4 million TEUs within three years.
The port is also advancing inclusivity initiatives, including converting certain terminals into women-run operations.
“India’s shipbuilding, ship repair, and recycling ecosystem is evolving rapidly. With government support, green energy, and international compliance, we are well-positioned to become a global maritime leader,” Purohit said.
