<p data-path-to-node="3" id="p-rc_bf4070279db4eb08-214"><span class="citation-1282 citation-end-1282">India’s ship recycling sector, centered at the world's largest beaching and demolition hub in Alang-Sosiya, Gujarat, is demonstrating strong structural momentum, solidifying the nation's position as the foremost destination for sustainable and green vessel demolition.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="1"><!----></sup></source-footnote></span></p><p data-path-to-node="4" id="p-rc_bf4070279db4eb08-215"><span class="citation-1281 citation-end-1281">Recent data released by international maritime bodies and the United Nations Conference on Trade and Development (UNCTAD) confirms that India has expanded its global market share to over 35%, up significantly from 30.1% in previous cycles, processing nearly 3 million gross tons (GT) of end-of-life tonnage.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="2"><!----></sup></source-footnote></span><span class=""> The current upcycle reflects a confluence of firm domestic steel demand,</span><span class=""> regulatory consolidation,</span><span class=""> and India's aggressive alignment with the </span><b data-path-to-node="4" data-index-in-node="449">Hong Kong International Convention (HKC) for the Safe and Environmentally Sound Recycling of Ships</b><span class="">.</span></p><h3 data-path-to-node="5">The Hong Kong Convention and EU Recognition Catalyst</h3><p data-path-to-node="6" id="p-rc_bf4070279db4eb08-216"><span class="citation-1280 citation-end-1280">The primary catalyst transforming Alang from a conventional scrap yard into an institutional green recycling hub has been compliance with international environmental standards.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="3"><!----></sup></source-footnote></span><span class=""> Over 115 recycling plots at Alang have achieved Statement of Compliance (SoC) certification under the HKC,</span><span class=""> backed by central modernization grants and environmental infrastructure investments overseen by the Gujarat Maritime Board.</span></p><p data-path-to-node="7" style="--animation-duration: 832ms;" id="p-rc_bf4070279db4eb08-217"><span class="citation-1279 citation-end-1279">The industry achieved another critical operational milestone following the formal inclusion of Indian ship recycling yards under the European Union's approved list of recycling facilities under the EU Ship Recycling Regulation (EUSRR).<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="4"><!----></sup></source-footnote></span> This regulatory acceptance makes India the first non-OECD nation to host EU-approved facilities, enabling shipowners operating EU-flagged vessels to legally beach and dismantle their ships at Alang rather than being restricted to higher-cost Mediterranean yards in Turkey or Europe.</p><h3 data-path-to-node="8">Policy Boost: The Shipbreaking Credit Note Scheme</h3><p data-path-to-node="9" id="p-rc_bf4070279db4eb08-218"><span class="citation-1278 citation-end-1278">On the domestic policy front, the Ministry of Ports, Shipping and Waterways (MoPSW) has implemented targeted incentives to stimulate yard activity and integrate ship recycling with domestic shipbuilding.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="5"><!----></sup></source-footnote></span></p><p data-path-to-node="10" id="p-rc_bf4070279db4eb08-219"><span class="citation-1277">Under the flagship </span><b data-path-to-node="10" data-index-in-node="19" class="">Ship-breaking Credit Note Scheme</b><span class="citation-1277 citation-end-1277">, shipowners who decommission vessels at certified Indian yards receive a tradeable credit note equivalent to 40% of the scrap value of the recycled vessel.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="6"><!----></sup></source-footnote></span><span class=""> </span><span class="citation-1276 citation-end-1276">This credit can subsequently be applied to cover up to 5% of the construction value of a new vessel ordered at an Indian shipyard.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="7"><!----></sup></source-footnote></span><span class=""> The initiative has effectively created a circular maritime economy,</span><span class=""> simultaneously encouraging shipowners to scrap their vintage fleet in India while injecting fresh orders into domestic shipbuilding yards.</span></p><h3 data-path-to-node="11" class="">Scrap Steel Demand and Fleet Demolition Drivers</h3><p data-path-to-node="12" id="p-rc_bf4070279db4eb08-220"><span class="citation-1275 citation-end-1275">Underpinning the financial viability of Indian recyclers is the robust appetite of the domestic secondary steel market.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="8"><!----></sup></source-footnote></span> Steel rerolling mills in Gujarat and western India depend heavily on high-tensile plate steel salvaged from ship hulls,<span class=""> which feeds into regional infrastructure,</span> real estate, and industrial fabrication projects. With domestic steel prices holding firm, Indian cash buyers have maintained competitive offering prices—ranging between $480 and $530 per Light Displacement Ton (LDT)—enabling them to consistently outbid competing yards in Chattogram, Bangladesh, and Gadani, Pakistan, both of which continue to struggle with foreign exchange constraints and letter-of-credit (LC) restrictions.</p><p data-path-to-node="13" style="--animation-duration: 443ms;" id="p-rc_bf4070279db4eb08-221">Simultaneously, the global supply of end-of-life tonnage is entering an expansive cycle.<span class=""> </span><span class="citation-1274 citation-end-1274">The Baltic and International Maritime Council (BIMCO) projects that more than 16,000 commercial vessels will need to be recycled over the coming decade due to age and strict carbon-intensity indicators (CII) imposed by the International Maritime Organization (IMO).<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="9"><!----></sup></source-footnote></span></p><p data-path-to-node="14" style="--animation-duration: 534ms;" id="p-rc_bf4070279db4eb08-222"><span class="citation-1273 citation-end-1273">With the planned physical expansion of Alang’s waterfront capacity toward 9 million LDT, India's ship recycling sector is well-positioned to maintain its global leadership, recycling an estimated 500 to 600 commercial vessels annually while driving an environmentally sound maritime supply chain.<source-footnote ng-version="0.0.0-PLACEHOLDER" _nghost-ng-c2613518143=""><sup _ngcontent-ng-c2613518143="" class="superscript" data-turn-source-index="10"></sup></source-footnote></span></p>