India is home to one of the largest ship breaking facilities in the world with over 150 yards along its coast. On an average, close to 6.2 Million GT is scrapped in India every year, which accounts for 33% of the total scrapped tonnage in the world. Recently, however, health and environmental concerns have led to adoption to new policy regimes at international level.
The governments of Japan and Gujarat have mutually agreed to upgrade the existing Alang shipyard. The two parties have signed a Memorandum of Understanding, which focuses on technology transfer and financial assistance from Japan to assist in the upgrading of operations at Alang to meet international standards. This is a part of the Delhi Mumbai Industrial Corridor, a larger partnership between the Japanese and Gujarat government. Under this plan, Japan will address the environmental implications of ship breaking in Alang, and will develop a marketing strategy. The project is to be carried out as a public-private partnership. The project's aim is to make this shipyard the largest International Maritime Organization-compliant ship recycling yard in the world.