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Press Release

September 15, 2017

World's Biggest Ship Recycling Yard Receives Major Enhancement through JICA Cooperation
- Modernising Ship Recycling Industry in India to Enhance its Global Share -

New Delhi, September 15, 2017: Japan International Cooperation Agency (JICA) signed an agreement with the Government of India to provide Official Development Assistance (ODA) Loan of 8,520 million Japanese Yen (approximately INR 500 crores) for ‘Upgradation of Environmental Management for Ship Recycling in Gujarat.' The ODA loan's conditions are very concessional, i.e. 1.2% interest rate for project activities and 0.01% interest rate for consulting services, and 30 years of repayment period (including 10 years of grace period). The JICA-assisted project aims to promote more environment friendly, sound and safer ship recycling in Alang and Sosiya areas in Gujarat, by upgrading ship recycling related facilities and introducing preventive measures in accordance with international conventions such as Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), thereby contributing to environmental conservation and sustainable development of the industry in Gujarat.

The ODA loan agreement was signed between Mr. Takema Sakamoto, Chief Representative, JICA India Office and Mr. S. Selvakumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India.

Speaking on the occasion, Mr. Takema Sakamoto, Chief Representative, JICA India Office said, "India has the biggest capacity of ship recycling facility in the world, and Alang and Sosiya regions are key and dominant areas for ship recycling industry with approximately 130 operational ship recycling yards along the coast with more than 90% of domestic share of ship recycling. It becomes an utmost priority to provide safe environmental and working conditions for the employees working at the recycling facility. JICA's cooperation will enhance safety, environmental and health aspects for approximately 10,000 labourers working at the shipyard, and will provide major improvements in the methods adopted for ship recycling. JICA's collaboration will modernise the ship recycling process by adoption of advanced operational process in consonance with international standards such as the HKC, in 2009. JICA aims to enhance adoption of safety measures so as to decrease possibility of fatal accidents and casualties."

JICA assistance will focus on the on-shore as well as off-shore activities. The ship recycling yards to be upgraded in the project will be equipped with impermeable floors as well as drain ditch and pits to prevent ground water pollution. Large crawler cranes will be deployed which will directly carry the cut off parts of a ship to avoid dropping the polluted parts of a ship in the intertidal zone. In addition, Off-shore Tank Cleaning Barge will be introduced to clean tankers before beaching. The mobile decontamination system will also be introduced to remove sludge in a ship completely. These improvements will introduce environmentally sound and safer ship recycling, and enable ship recyclers to adopt process in accordance with international practices. The Project will conduct capacity development training courses for stakeholders at different levels. The training courses will cover key aspects including safety, environment, prevention of pollution etc. The recycling waste will be systematically collected and treated at the Treatment, Storage, and Disposal Facility (TSDF) area.

The Executing Agency for the Project is Gujarat Maritime Board (GMB).

JICA is committed towards supporting quality infrastructure in transport system to facilitate sustained economic development. Since 1982-83, JICA has provided ODA loans of 2,000 billion Japanese Yen (approximately INR 115,000 crore) for the development of transport sector in India.

PhotoShip breaking and recycling activities at Alang (Gujarat) world's biggest ship recycling yard

PhotoL-R - Mr. Takema Sakamoto, Chief Representative, JICA India Office, Mr. Kazuhiko Koshikawa, Executive Senior Vice President, JICA Head Office and Mr. S. Selvakumar, Joint Secretary , Department of Economic Affairs (DEA) at the Loan Agreement Signing of Upgradation of Environmental Management for Ship Recycling in Gujarat

About JICA

Established, by a specific law, as an independent administrative institution under the Government of Japan,the Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation, as a sole Japanese governmental agency in charge of ODA implementation. JICA is the world's largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries, and provides assistance in forms of loan, grant and technical cooperation so that the emerging countries can strengthen their capabilities.

For further information, please contact:

JICA India Office
Ai Tachikawa/Vini Sharma
+91 11 49097000


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