India is one of the world's largest ship recycling nations. The beach at Alang in Gujarat is among the largest ship breaking yards in the world by tonnage recycled. The industry employs a large workforce and handles vessels from across the global shipping industry. But ship recycling is also a heavily regulated activity with significant environmental and worker safety implications, and the legal framework governing it has been evolving rapidly.
The Hong Kong Convention
The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009 is the primary international instrument governing ship recycling. It sets out standards for the design, construction, and operation of ships to facilitate safe recycling, and imposes requirements on recycling facilities to operate to defined environmental and safety standards.
India ratified the Hong Kong Convention, which entered into force internationally in June 2025. This means that vessels flying the flag of convention states and destined for recycling in India must comply with the convention's requirements, including having a valid Inventory of Hazardous Materials on board. Indian ship recycling facilities must be authorised under the convention framework.
Indian Regulatory Framework
Domestically, ship recycling in India is governed by the Recycling of Ships Act 2019 and the rules made thereunder. The Act was passed in anticipation of India's ratification of the Hong Kong Convention and establishes the domestic framework for authorisation of ship recycling facilities, the responsibilities of shipowners delivering vessels for recycling, and the enforcement mechanism.
Under the 2019 Act, ship recycling facilities must obtain authorisation from the Competent Authority designated by the central government. The facility must demonstrate compliance with environmental, health, and safety standards set out in the Act and rules. Facilities that operated under informal arrangements before the Act came into force have been required to obtain formal authorisation.
Shipowners who sell vessels for recycling to Alang facilities need to ensure that the recycling facility they are selling to is properly authorised under the Recycling of Ships Act 2019 and, following India's ratification of the Hong Kong Convention, is listed on the authorised facilities list. Selling a vessel to a non-compliant facility can expose the shipowner to regulatory risk in their flag state as well as in India.
The Inventory of Hazardous Materials
One of the key requirements of the Hong Kong Convention is that vessels destined for recycling must have an Inventory of Hazardous Materials — a document that identifies the hazardous materials present in the vessel's structure and equipment. This inventory must be prepared and certified by an approved body before the vessel is delivered for recycling.
The inventory is important because it tells the recycling facility what hazardous materials it will encounter during dismantling, allowing it to plan safe handling and disposal. Asbestos, polychlorinated biphenyls (PCBs), heavy metals, and ozone-depleting substances are among the materials that must be inventoried.
Preparing an accurate inventory for an older vessel can be a complex exercise, and shipowners should begin the process well in advance of a planned recycling sale.
Worker Safety
Ship recycling at Alang has historically been associated with significant occupational health and safety risks. Workers handling asbestos, toxic paints, and other hazardous materials without adequate protective equipment have faced serious health consequences. The 2019 Act and the Hong Kong Convention framework impose obligations on recycling facilities to provide appropriate training and protective equipment and to maintain safe working conditions.
Enforcement of worker safety standards has been a challenge in practice, and the industry has faced sustained scrutiny from international labour and environmental organisations. Facilities that aspire to take vessels from European-flagged owners, who face regulatory pressure from the European Union's Ship Recycling Regulation, need to demonstrate compliance with higher safety standards to be included on the EU's approved facilities list.
The Sale and Purchase Transaction
When a vessel is sold for recycling, the sale and purchase agreement must address the regulatory requirements of both the flag state and the recycling country. Representations and warranties about the vessel's hazardous materials inventory, the existence of valid certificates, and compliance with applicable recycling regulations are standard provisions. The allocation of risk and liability in the event of non-compliance needs to be carefully negotiated.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It does not create a lawyer-client relationship. For advice specific to your situation, please consult a qualified legal professional. LawCite Advocates is a law firm registered in India.