Alang being tugged by Blue Lady again

With the Supreme Court verdict pending over issues of dismantling the retired Norwegian ship 'SS Blue Lady' (ex-SS Norway), Alang is in a dilemma: What if the apex court asks the ship to be returned?

From the day the ship anchored (August 15, 2006) till now, Blue Lady has slided out towards the sea, nearly 1,500 feet from the shore, making it almost impossible to move it from there.

"It will be a huge predicament for us if the apex court rules against dismantling the ship. If it does so, the ship stays here since it is now almost impossible to float it again," lamented Vishnu Gupta, president of Ship Recycling Industries Association (India).

According to Gupta, on Wednesday the apex court reserved its verdict on granting permission for dismantling the ship estimated to be a mass of 46,000 tonnes, mostly asbestos and steel materials.

Blue Lady has been synonymous with 'controversy' for over an year now, with several NGOs opposing its anchoring at Indian shores due to the toxic materials it was carrying.

However, the Blue Lady controversy is not the only thing that has brought Alang into the news. The ship-recycling industry has been lately crying foul over the revival package announced under the new policy by Gujarat Maritime Board in 2006.

"Although the policy has been termed as a 'revival package', the maritime charges have been increased around 10 per cent since it was last announced, from 1994-2004. We have had almost no support from the Gujarat government and Gujarat Maritime Board who have been the main beneficiaries during the peak period of the industry," says Gupta.

The Ship Recycling Industries Association (India) has also made several requests to the state and Centre to relax the custom duties, maritime charges and other levies on the industry.

Moreover, the industry is going through a sinking feeling with the inflow of tonnage falling 80-90 per cent in the last five years. It has also been facing a stiff competition from neighbouring countries like Bangladesh, Pakistan and China who offer favourable incentives to the industry.

Gupta claims the 25-year-old industry would soon die out lose its existence if the government fails to offer better incentives.

"During its peak, the industry ran 175 plots with around 200-250 workers working in each plot. It has now been reduced to a mere 25 plots, with only 45 vessels having touched the Indian shores so far this year," says Gupta, adding that the association has asked for a relaxation in maritime charges for five years or less.

Alang has, therefore, pinned its hope on the apex court's verdict on the Norwegian ship. "If the yard is allowed to dismantle the ship, we believe it will provide us enough credibility to attract bigger vessels and more tonnage than our neighbouring countries," adds Gupta.

At present, all the bigger vessels are anchored at either Bangladesh, Pakistan or China.