India will rule the world of ‘ship recycling’, mega-plan of ₹76000 crore ready
Uma Shankar July 02, 2026 11:24 AM

According to Union Shipping Minister Sarbananda Sonowal, India aims to recycle about 16,000 ships in the next decade and the country has announced financial assistance of more than US $ 8 billion i.e. Rs 76 thousand crore to help in the development of ship building and ship recycling sector.

According to an official statement, India and the European Union have reiterated their commitment to strengthen cooperation in sustainable ship recycling. Both sides expressed confidence in the progress made towards inclusion of Indian ship recycling facilities under the European Ship Recycling Regulation (EUSRR).

The statement said that during the talks between Sonowal, Minister of Ports, Shipping and Waterways, and Jessica Rosewall, European Commissioner for Environment, Water Resilience and Competitive Circular Economy, both sides reviewed the ongoing audit and compliance process for Indian ship recycling yards to get them recognized under the EU regulatory framework.

jobs will be created

Sonowal further said that increasing the number of internationally recognized Indian recycling facilities will significantly contribute to the global circular economy. This will promote environmentally friendly recycling practices, create jobs and strengthen marine sustainability. Commissioner Rosewall welcomed the progress made so far and proposed the creation of a Joint Working Group (JWG) comprising representatives from the Ministry of the Environment and other relevant ministries and organizations for effective coordination and support in the next phase of the process.

Discussion will be held with EU member countries

The statement said that the Commissioner stressed the importance of unannounced inspections to maintain high standards of compliance, transparency and accountability. Also, he said that the matter will be discussed with EU member states during the autumn session before any final decision is taken. Rosewall also expressed his desire to visit Indian ship recycling facilities after the completion of the consultation and assessment process.

He reiterated that the EU's approach is in line with the outcome of the India-EU Free Trade Agreement negotiations and the provisions of the Hong Kong International Convention for the Safe and Environment-Friendly Recycling of Ships. According to the statement, these discussions underline the growing strategic partnership between India and the European Union in advancing sustainable maritime practices.

India's share in ship recycling

It said that the recognition of rule-compliant Indian ship recycling facilities under the EU framework is expected to strengthen global recycling capacity, promote high environmental and safety standards and help in responsible 'end-of-life' management of ships.

Additionally, this will also strengthen the resilient and sustainable global maritime supply chain. According to recent projections by UNCTAD (United Nations Conference on Trade and Development), India's share in worldwide ship recycling is expected to increase from 30.1 percent in 2024 to 35.4 percent in 2025. The country recycled 2.99 million gross tons (GT) of ships during 2025, an increase of nearly 60 percent compared to 1.86 million GT recycled in 2024.

The government has invested a lot

The Union Minister said that the Government of India is facilitating the listing of Indian ship recycling yards through a transparent process of audit, inspection and compliance of rules. He said Indian facilities have invested significantly in improving infrastructure and working practices to meet international standards, reflecting the country's commitment to sustainable marine development and responsible recycling.

Sonowal said Indian ship recycling facilities are supported by strong environmental infrastructure and worker welfare measures, including effluent treatment plants, scientific waste management systems, multi-specialty health facilities supported by the Red Cross Society and dedicated housing for workers. Sonowal also stressed that the government conducts periodic and without prior notice inspections to ensure that the highest standards of compliance with environmental regulations, worker safety and transparency in functioning are continuously maintained.

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