Alang yards face EU approval setback as Parliament committee objects to listing

Two ship recycling yards in Alang, Gujarat, face a setback in their bid to handle European Union (EU)-flagged vessels after the European Parliament’s environment committee voted on 4 November 2026 against their proposed inclusion in the European List of Ship Recycling Facilities.

The objection concerns Shree Ram and YSI Recyclers, which the European Commission had proposed adding to the list’s 16th edition. Committee members questioned whether their beaching-based operations meet European requirements for environmental protection and worker safety. The vote advances an objection to the proposal, rather than constituting a final rejection of the yards’ applications.

Which Alang facilities are seeking approval?

The proposed entries are Shree Ram Vessel Scrap Pvt Ltd/Shree Ram Shipping Industries Pvt Ltd, covering plots 78 and 81, and YSI Recyclers LLP at plot 59 in Alang-Sosiya.

Their inclusion would mark an important development for India’s access to the EU ship recycling market. The Commission’s proposal followed compliance assessments and investments intended to bring the facilities into line with European requirements.

Under the EU Ship Recycling Regulation, large EU-flagged vessels covered by the legislation must use approved facilities when they reach the end of their operating lives. The European List includes qualifying facilities both within and outside Europe.

Why did the committee oppose the proposal?

Opponents argue that dismantling vessels in the intertidal zone makes it difficult to contain pollutants and protect workers. Their objection also questions whether downstream treatment of waste and recovered materials meets standards comparable to those in the EU.

Sara Matthieu presented the objection, with support from fellow Members of the European Parliament Bruno Tobback, Gerben-Jan Gerbrandy and Anja Hazekamp. The NGO Shipbreaking Platform welcomed the vote, arguing that approval would weaken the regulation’s environmental safeguards. These remain contested assessments within the approval debate.

The Commission has defended its proposal, maintaining that the regulation does not impose an outright prohibition on beaching. Its position is that facilities must demonstrate compliance with the applicable safety, pollution-control and hazardous-material requirements.

Why do shipowners support the Indian yards?

European Shipowners, represented by the European Community Shipowners’ Associations (ECSA), has backed the proposed additions, arguing that compliant yards should be recognised regardless of location.

ECSA secretary general Sotiris Raptis said approval would acknowledge investments made to meet European standards. The association also considers access to additional compliant capacity important for encouraging safer ship recycling internationally.

In June 2026, ECSA and the International Chamber of Shipping published a study examining differences between European requirements and the International Maritime Organization’s Hong Kong Convention, supporting a clearer route for qualifying overseas facilities to enter the list.

How does the decision affect India’s recycling ambitions?

India’s government has reported that 35 Alang yards have applied for European listing. It also says modernisation assistance of ₹53.5 crore has helped 115 facilities achieve compliance with the Hong Kong Convention.

Reported upgrades include impermeable working surfaces, drainage systems, mechanised lifting equipment, segregated hazardous-waste storage and authorised disposal arrangements.

However, Hong Kong Convention compliance does not automatically confer European approval. The convention entered into force on 26 June 2025, while the EU framework includes additional environmental and safety requirements.

What happens next?

The objection is expected to reach Parliament’s plenary later in November. According to the NGO Shipbreaking Platform, a parliamentary objection would not legally compel the Commission to withdraw its proposal; member-state consideration remains a separate part of the process.

For the two Alang facilities, European approval therefore remains unresolved.