Gujarat: Shipbreakers at Alang criticise new policy as charges shoot up to 35%:

Summary: In lieu of the serviced land made available to shipbreakers on lease basis, the government through its arm Gujarat Maritime Board (GMB) collects plot rentals, development charges, LDT charges and water charges from shipbreakers. Though the overall policy is a balanced one, the increase in charges levied on us is perhaps the most sore part of the policy. Members of the Ship Recycling Industries Association (SRIA) said the increase in fees is untimely, considering that business at Alang is currently at a six-year-low. The charges have gone up by 25-35 per cent and this is a burden on us. Both these charges will increase 10 per cent annually.

Business at Alang is at a six-year-low. File Business at Alang is at a six-year-low. File At a time when the world’s largest ship-breaking yard at Alang fights for survival, a new ship recycling policy announced by the Gujarat government has come in for criticism from shipbreakers who are staring at a possible increase in expenditure in form of rentals and fees. Though the new notification makes it flexible for shipbreakers to resize, realign and readjust their plots as per the requirement and size of ship, the bone of contention has been the proposed increase in government charges that stands raised by as much as 35 per cent.

Members of the Ship Recycling Industries Association (SRIA) said the increase in fees is untimely, considering that business at Alang is currently at a six-year-low. The shipbreakers, however, did not oppose the provisions that make them accountable for any possible environmental damage that old ship might create and the increase in the compensation paid to families of laboureres in case of fatal accident at work. “The rates have been increased at a time when our business is passing through a recessionary phase. The charges have gone up by 25-35 per cent and this is a burden on us. A 5 or a 10 per cent hike would have been bearable.

Source: nyoooz. 24 January 2016

http://www.nyoooz.com/ahmedabad/331994/gujarat58-shipbreakers-at-alang-criticise-new-policy-as-charges-shoot-up-to-35