India’s ship recycling industry is poised for a landmark achievement as three recycling facilities at Alang, Gujarat, move closer to becoming the first South Asian yards to be included in the European List of Ship Recycling Facilities.
The European Commission has proposed the inclusion of Shree Ram Vessel Scrap Pvt. Ltd./Shree Ram Shipping Industries Pvt. Ltd. (Plot Nos. 78/81) and YSI Recyclers LLP (Plot No. 59) in the 16th edition of the European List after determining that the facilities comply with the stringent requirements of the EU Ship Recycling Regulation (EUSRR).
The proposal has been opened for public consultation until August 30 and is expected to be voted on and adopted by the 27 European Union member states in October.
If approved, the facilities will become the first South Asian, first non-OECD, and first beaching-based ship recycling yards to receive EU recognition, allowing them to recycle vessels flying the flags of EU member states. The move also signals growing international acceptance of the beaching method when supported by modern infrastructure and robust environmental and safety standards.
The proposed recognition follows years of investments by Indian recyclers to upgrade their facilities in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which entered into force on June 26, 2025.
Alang currently has 115 operational HKC-compliant ship recycling yards, with 35 facilities having applied for EU recognition. Six yards are undergoing the EU compliance process, while three have completed all required procedures and are now eligible for inclusion under the EUSRR framework.
The development comes months after the India-EU trade pact expanded cooperation in ship recycling and follows multiple rounds of inspections by European Commission officials, which prompted further improvements in hazardous waste management, downstream treatment and disposal systems, medical facilities, and worker welfare infrastructure.
Both Shree Ram and YSI also benefited from a sustainability programme initiated by A.P. Moller-Maersk nearly a decade ago to enhance environmental performance and worker safety at Alang. Under the programme, Maersk has safely recycled 17 vessels at Indian yards, including Shree Ram and YSI, without any reported safety or environmental incidents.
The proposal has been welcomed by global maritime stakeholders. GMS Inc., the world’s largest cash buyer of ships for recycling, described it as recognition of the significant progress made by Indian recyclers in environmental protection, worker safety and regulatory compliance. The company said responsible ship recycling should be assessed based on verified standards and operational performance rather than geographical location.
The World Shipping Council (WSC) also welcomed the move, stating that it reflects a performance-based approach to sustainable ship recycling. Simon Bergulf, Vice President – Environment and Climate at WSC, said the inclusion of the Indian facilities would demonstrate that one of the world’s largest ship recycling regions can successfully comply with Europe’s stringent environmental and safety standards while encouraging other yards in the region to follow suit.
The recognition is expected to significantly expand approved global recycling capacity at a time when the shipping industry is preparing for a surge in vessel retirements. According to BIMCO, around 16,000 ships are expected to require recycling over the next decade.
The development is also expected to strengthen India’s ambitions of becoming a global maritime manufacturing and recycling hub. The Government of India’s Shipbreaking Credit Note Scheme, which offers incentives for recycling ships at HKC-compliant Indian yards and supports domestic shipbuilding, is likely to benefit from wider acceptance of Indian recycling facilities by European shipowners.
According to UNCTAD, India’s share of global ship recycling increased from 30.1% in 2024 to 35.4% in 2025, with the country recycling 2.99 million gross tonnes (GT) of ships during 2025, up nearly 60% from 1.86 million GT in the previous year.
If formally adopted in October, the inclusion of the three Alang facilities will mark a defining milestone for India’s ship recycling industry, reinforcing the country’s position as a leading destination for safe, environmentally responsible and globally compliant ship recycling.
