The Government of India has signed a loan agreement worth USD 76 million for a project to upgrade the environment management plan at Alang-Sosiya ship recycling yards.
The total cost of the project will be USD 111 million, out of which USD 76 million will be provided as soft loan from Japan International Cooperation Agency (JICA).
Out of the remaining amount, USD 25 million as taxes and fees will be borne by Government of Gujarat and the balance USD 10 million will be shared by Ministry of Shipping and the Government of Gujarat.
The project, which would be undertaken by Gujarat Maritime Board (GMB), is likely to be completed by 2022.
It would help the Alang ship recycling yards to comply with international safety and environmental regulations, which would in turn attract more business at the recycling facilities in the area, further consolidating India’s share in the global ship recycling industry.
Indian government informed that the project would also help in safeguarding the marine and coastal environment. The use of advanced decontamination technology would rule out the possibility of fire accidents in oil and chemical tankers.