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India scrapyards win US$180 million loan to silence angry environmentalists

INDIA's big ship scrapping beach in Gujarat, long the target of angry environmentalists, will upgrade 70 scrap yards with a US$180.28 million to pay for eco-friendly features as well as housing and a schools, reports IHS Maritime 360.

Atul Sharma, of the Gujarat Maritime Board said that the Japan International Cooperation Agency (JICA), will provide 85 per cent of the funds to the 70 yards, with India providing 15 per cent of the 40-year loan at 1.4 per cent.

The money will pay to remove and treat hazardous materials and enlarge incinerators and oil treatment facilities to dispose of 25 tonnes of waste a day. A hazmat dry dock will remove toxic materials such as asbestos, sludge and paint chips.

Mr Sharma said that any parts removed without being damaged could be reused, such as sheets containing asbestos, or cables and electronic circuits.

Alang's scrap beaches, subject to calls for their boycott by eco-groups, have been upgrading. Four yards have completed the first phase of an international standard certification process that would ultimately confirm the yards meet the standards of the International Hong Kong Convention for the Safe and Environmentally Sound Recycling of Ships.

But extra costs makes it hard for those yards to stay in business. While India has reduced customs duties, scrapyards say they have been unable to break even because of weakening steel demand caused by competition from cheap steel from China.