SC okay seen as relief to Gujarat shipbreaking sector

The Supreme Court-appoinment committee clearance to Blue Lady has given some respite to the shipbreaking industry in Gujarat. The industry has been facing tough time and is struggling for survival.

Alang Shipbreaking Yard which had a scrap turnover of 30 lakh tonne five years ago has now reduced to 4-5 lakh tonne.

Blue Lady is likely to generate employment for over 500 workers in Alang. "Also, this will pave way for more ships in future," said Sanjay Mehta of Priya Blue Industries who has recently purchased Blue Lady for dismantling at $16 million. Earlier, it was to be dismantled by Haryana-based Rajeev Raniwal.

The dismantling of the Norwegain ocean liner will generate Rs 25-30 crore for the state government, Mehta added.

"The state and central government have ignored our requests for modernisation of Alang, said Vishnu Gupta, recently appointed president of Ship Recycling Industries Association of India.

"Five years ago, there were 125 oxygen plants and 150 rolling mills in Bhavnagar district of which only 15 rolling mills and 5 oxygen plants are functioning today," he added.

Citing the example of Clemenceau Gupta said, "Some people exaggerated that case.The committee took some time to take decision on that. Had the French government waited, Clemenceau would have been here by now." While Clemenceau was reported to have about 500 tonne of aesbestos and other toxics, Blue Lady is said to contain about 1240 tonne.

"We have been handling hazardous waste for years and most of the hazardous chemicals are recycled, he said adding that they have also started a dumping yard at Alang.

"The arrival of a ship cannot not bring the entire industry out of depression," said Raj Bansal, former president of Ship Recycling Industries Association.

"The country has been handling one lakh tonnes of aesbestos every year from a long time so why is this sudden hue and cry," he added.

There will be a huge abandonment of ships to India as by 2015 double-bottom ships will be compulsory, sources said.