Note: Having accompanied the Special Rapporteur on Toxic waste to Alang, ToxicsWatch Alliance (TWA) finds the statement of the Special Rapporteur with regard to "improving health and safety conditions in shipbreaking yards" to be factually incorrect. The assertion that "considerable decrease in the number of work-related injuries resulting in death or permanent or temporary disabilities" at shipbreaking yards is a figment of someone's imagination. Even newspapers reports can reveal the falsehood of this statement. TWA is aware that one IMO official was working overtime to influence the statement and report of Special Rapporteur. Having interacted with Prof. Okechukwu Ibeanu personally, I refuse to believe that he has made this statement. It appears that officials who drafted his report were under some influence. I suspect that someone else has attributed these views without cross-checking it with Prof Ibeanu.
The statement on page 2 of the Special Rapporteurs' report which one finds here also has the resonance of one IMO official:
With specific regard to shipbreaking, the Special Rapporteur notes with satisfaction
the improvement of the health and safety conditions in Alang/Sosiya, as well as the efforts made by the regulatory authority and the industry to improve the health and quality of life of workers and their families.
The Special Rapporteurs' views on hazardous waste management is also evidently incorrect because the National Inventory of Hazardous Wastes Generating Industries & Hazardous Waste Management in India prepared by India's Central Pollution Control Board (CPCB) available on its website reveals the correct picture. India has 36, 165 hazardous waste generating industries, generating 62, 32, 507 Metric Tonnes of hazardous wastes every year in the face of paucity of capacity to deal with it.
Out of the total waste generated within the country, as per CPCB, Land Fillable Hazardous Wastes is 27, 28, 326 MTA (Metric Tonnes/Annum), Incinerable Hazardous Waste is 4, 15, 794 MTA and Recyclable Hazardous Wastes is 30, 88, 387 MTA It is obvious that the recyclable portion of Hazardous Wastes is in the range of 49.55 % and is more than other two categories. The land disposable portion and incinerable portion are in the tune of 43.78 % and 6.67 % respectively.
India has only 22 Common Treatment, Storage and Disposal Facilities (TSDF) for the disposal of hazardous wastes in 10 States only namely Gujarat, Maharashtra, Uttar Pradesh, Andhra Pradesh, Himachal Pradesh, Madhya Pradesh, West Bengal, Punjab, Rajasthan and Tamil Nadu. Total disposal capacity of these facilities, is 15, 00, 568 MTA which is much less than the present generation of 27, 28, 326 MTA of land-disposable hazardous wastes. The deficit of TSDF capacity is 12, 27, 758 MTA. It is obvious that the additional TSDF to the tune of 15, 00, 000 T/A must be developed to accommodate the present and future quantities of land disposable hazardous wastes.
For incinerable hazardous waste as per CPCB, there are 14 Common Incinerators in 7 States and 127 individual incinerators in 12 States. Total incineration capacity of these incinerators is 3, 27, 705 MTA while the present generation of Incinerable hazardous wastes is 4, 15, 794 MTA. It is clear that there is a deficit of 88,089 MTA of incineration capacity of the country. It is proposed by different States to install additional incinerators to provide an additional incineration capacity of 2, 56, 710 MTA. From these figures reported in the “National Inventory of Hazardous Wastes Generating Industries & Hazardous Waste Management in India”, it is quite clear that Special Rapporteur has erred in welcoming "the significant progress the country has made in the area of the management and disposal of hazardous products and wastes" at page of his report.
The inconsistency with regard to his views on ship breaking is quite manifest when he says, "Regulatory authorities in Alang/Sosiya and the shipbreaking industry should
step up their efforts to improve health and safety in the yards" because he also states and observes his major concerns as "the health and safety situation
prevailing at the shipbreaking yards continues to remain critical, as witnessed by the 12 fatal accidents that occurred in Alang/Sosiya during the course of 2009, and there are a number of identifiable shortcomings which need to be addressed" at page 12 of his report. TWA agrees with the latter part of it.
TWA agrees with the report when it states, "Health facilities in Alang/Sosiya do not possess sufficient human, technical and financial resources to provide any treatment other than first aid for minor injuries. The nearest hospital equipped to deal with life-threatening conditions is in Bhavnagar, more than 50 kilometres away. The Red Cross hospital in Alang, which the Special Rapporteur visited, can count on only four medical doctors and nine beds to provide health care not only to some 30,000 workers in the yards, but also to the neighbouring villages of Alang (which has a population of about 18,000 people) and Sosiya (4,000 people)" on page 14.
TWA agrees, "In Mumbai the situation is even worse, with no permanent facilities except first aid and ambulance services."
TWA shares the observation that "most workers, but reportedly also a number of yard owners, are not aware of the serious life-threatening work-related diseases which may result from long-term exposure to toxic and hazardous substances and materials present on end-of-life ships. In particular, it appears that the majority of the
workforce and the local population do not know the adverse consequences of prolonged
exposure to asbestos dusts and fibres and are not familiar with the precautions that need to be taken to handle asbestos-containing materials."
It is true that "The majority of the workforce lives in overcrowded makeshift facilities just outside the yards. Most accommodations lack basic amenities such as kitchens, toilet facilities, electricity and running water. The water and sanitation facilities available in Alang/Sosiya remain grossly inadequate to deal with the consumption, cooking, and personal and domestic hygienic requirements of the 30,000 workers who work and live there. In Mumbai, the situation is even worse, with no safe drinking water available in the yards."
On page 13, he observes, "the vast majority of the workforce in Mumbai do not
receive any information on the hazards or risks to health and safety, nor do they receive any training on how to avoid or minimize them. With regard to safety training, the Special Rapporteur is of the view that existing training opportunities in Alang/Sosiya should be improved, considering the magnitude of the risks associated with shipbreaking activities and the hazardous substances workers are potentially exposed to." He adds, "Due to the informal nature of working arrangements, workers are not covered by social protection schemes, and do not receive any benefit in case of work-related injuries or diseases." TWA agrees with it.
He observes, employers do not pay for long-term medical treatment or for expenses
linked to chronic work-related illnesses. Workers do not usually receive any wages or
benefits when absent from work on medical grounds. TWA agrees with it.
TWA endorses Special Rapporteur's assessment wherein it says "in India ships are
dismantled on beaches, a method commonly referred to as “beaching”.5 This method of
ship dismantling fails to comply with generally accepted norms and standards on
environmental protection. Although very little work has been carried out to assess its
environmental impact, the dismantling of ships on sandy beaches without any containment other than the hull of the ship itself appears to have caused high levels of contamination of soil, air, and marine and freshwater resources in many South Asian countries, and to have adversely affected the livelihood of local communities surrounding the shipbreaking facilities, which often rely on agriculture and fishing for their subsistence" at page 9 of his report.
TWA welcomes Special Rapporteur's recommendation seeking "an independent study be
carried out to assess the actual and potential adverse effects caused by the discharge
of hazardous substances and materials into the natural environment. Such a study
should also assess the steps that need to be taken for the gradual phasing out of
“beaching” in favour of more environmentally friendly methods of shipbreaking" at page 21 of his report.
It appears that while making general observations, the report has erred but in many specific instances it has stated facts which merit the attention of Government of India, ship owning countries, companies and IMO who continue to contaminate South Asian beaches like Alang even as they cherish such beaches in their own countries. IMO treaty on ship recycling by promoting status quo with regard to shipbreaking activities on beach appears racist.
Gopal Krishna
ToxicsWatch Alliance (TWA)
Statement of the Special Rapporteur on Toxic waste
concludes his visit to India
The Special Rapporteur on the adverse effects of the movement and dumping of toxic and dangerous products and wastes on the enjoyment of human rights, Mr. Okechukwu Ibeanu, during a 10-day mission, from 11 to 21 January 2010, assessed the progress made India in minimizing the adverse effects that hazardous activities, such as shipbreaking and the recycling of electronic waste (e-waste), have on the human rights of countless individuals working in these sectors or living close to the places where these activities take place.
The Special Rapporteur visited the capital New Delhi and an e-waste recycling facility in Roorkee, informal small-scale laboratories for the dismantling and recycling of electronic products in a suburb of the capital, a facility for the treatment, storage and disposal of hazardous wastes in Ankleshwar, and a number
of shipbreaking yards in Alang and Mumbai.
”I welcome the significant progress India has made in improving health and safety conditions in the shipbreaking yards, as witnessed by the considerable decrease in the
number of work-related injuries resulting in death or permanent or temporary disabilities, but a number of serious concerns remain to be properly addressed”, Mr.
Ibeanu said.
“First and foremost, I urge the owners of the yards to comply with the existing labour and social security legislation, and the Government to monitor its effective
implementation”, he added. Training opportunities need to be improved, and personal protective equipments (PPEs) should be provided to, and used by, all workers in the
yards. Medical facilities do not possess sufficient human, technical and financial resources to provide any treatment other than first aid for inor injuries, and there are no schools or formal education facilities for the children of those employed in the yards, 20 per cent of whom are accompanied by their families. In India , ships are currently dismantled on the beaches, a method commonly referred to as “beaching”, and the impact of this on the surrounding environment and the livelihood of local communities relying on agriculture and fishing for their subsistence continues to be debated.
“In order to ascertain the environmental impact of the shipbreaking industry, I recommend that an independent study be carried out to assess the actual and potential
adverse effects that may be caused by the discharge of hazardous material into the natural environment, as well as the level of risk”, Mr. Ibeanu said.
The Special Rapporteur noted that he was “shocked by the extremely poor conditions in which most workers live in Alang and Mumbai”. Semi-skilled and unskilled workers
live in makeshift facilities lacking basic sanitation facilities, electricity and even safe drinking water. “I call on Governmental authorities to provide appropriate plots of lands, and facilitate the construction of adequate housing facilities for those who work in the yards. Adequate sanitation and drinking water facilities should also be put in place”.
10/04/2011
Updates from South Asian Beaches
Accident prone MSC Chitra to be dismantled
On August 7 last year the cargo ship MV Khalija-3 collided with the container vessel MSC Chitra 30 nautical miles off the Mumbai port. This was followed by another accident involving the container ship, which occurred on March 19, 2011. This time the mishap resulted in the ship's anchor chain damaging the winch and other parts. The cause of the same was the breaking of mooring lines leading to drifting of the already damaged vessel.
Finally, according to sources in DG Shipping, the authorities have now opted to tear the ill-fated MSC Chitra down, overriding their earlier decision to wash their hands clean of the ship by selling it to the Alang ship-breaking yard.
With the efforts of salvage company Smith Tech, MSC Chitra re-floated safely on March 11. Soon after, the directorate general of shipping (DGS) decided to get rid of the vessel by way of scrapping, and permitted her sending off to Alang ship-breaking yard. However, delay in clearance processes resulted in the mishap. Currently, the ship lay at Alfa anchorage and the salvage company is spending nearly US$2.5L on it per day.
Earlier, when DGS permitted the sale of MSC Chitra at Alang, Smith Tech had promised to escort the vessel as far as Alang -- nearly 200 miles from Mumbai, and the dead vessel, whilst being towed, would have taken just 4 days to cover the distance. But DGS took too much time to provide clearance to her last voyage, which eventually led to the accident on March 19.
If the ship can safely withstand outer anchorage and be re-floated, being currently grounded 30 to 50 meters in deep water, then it could be brought to Alang. However, the sudden decision to sink her in deep water has raised many questions.
Apr 10, 2011
By Mahebub Kureshi
Bhavnagar
DNA
Wires holding MSC Chitra come apart, ship moved away
The ill-fated ship MSC Chitra has been moved 30 nautical miles off the city harbour as the anchor wires holding it came apart during a strong receding tide, the Directorate General of Shipping said today. During the strong "ebb tide" on Saturday (full moon day), the anchor wires holding the vessel afloat were parted. "Fortunately the vessel was manoeuvred safely out of port without damage to other vessels or blocking the channel," a release issued here by the DGS said, adding that MSC Chitra has been moved to a location about 30 nautical miles north of the entrance of Mumbai Port.
Having partially submerged after an accident in August last year, MSC Chitra was refloated only nine days earlier on March 10 and being prepared to be taken to the Alang ship-breaking yard, the DGS said. During the nine days that it was refloated, it was placed on four point moorings while at its new location, salvors were working with two tugs and one salvage barge to ensure safety of the vessel, it added. The salvors are working again to prepare the vessel for beaching at Alang, it said.
MSC Chitra had collided with the in-bound M V Khalija on August 7 last year while exiting the Mumbai harbour, leading to heavy damage to port operations. After the collision the vessel started taking in water and settled on a shallow patch within Mumbai Port Trust, listed heavily and partly submerged.
March 22,2011
PTI
In the continued absence of ship breakers from Bangladesh from market, both India and Pakistan are proving to valuable outlets for cash buyers and owners alike.
New India Assurance asked to pay for ship wreck loss
The Supreme Court has dismissed the appeal of New India Assurance Company which had rejected the claim of a ship-breaking firm for compensation. The firm bought a Belgian vessel and was bringing it from Singapore on its ‘funeral voyage’ to Alang port in Gujarat for demolition. It wrecked on way in high seas due to bad weather.
The ship was covered by marine insurance and the ship-breaker invoked the policy. The insurer rejected the claim leading to litigation in the consumer forum.
The National Consumer Commission asked the insurance company to pay Rs 14 crore with 9 per cent interest to Priya Blue Industries, the scrap dealer in ships. However, the insurer appealed to the Supreme Court.
It ruled that the loss suffered due to the ship wreck was properly assessed by the surveyors and the commission order was correct.
M J Antony
Business Standard
April 04, 2011
Shipbreaking in Bangladesh
Bangladesh ship breakers have got an interim High Court (HC) order issued in their favour on February 27, 2011. The order says, ship import should not be stopped and sought suggestions from parties concerned to facilitate procurement of old scrap vessels.
Sitakundu in Chittagong emerged as the world's largest ship-breaking destination as Bangladeshi importers had beaten their competitors in India and Pakistan to buy the highest number of scrap vessels sold in the international market during 2007, 2008 and 2009 period.
The active ship breaking yards in Sitakundu, 20 kilometres north of the port city Chittagong, dismantled more than 130 ships in 2007.
Bangladesh used to dismantle nearly 50 per cent of the ships sent to scrap-yards across the globe.
On August 7 last year the cargo ship MV Khalija-3 collided with the container vessel MSC Chitra 30 nautical miles off the Mumbai port. This was followed by another accident involving the container ship, which occurred on March 19, 2011. This time the mishap resulted in the ship's anchor chain damaging the winch and other parts. The cause of the same was the breaking of mooring lines leading to drifting of the already damaged vessel.
Finally, according to sources in DG Shipping, the authorities have now opted to tear the ill-fated MSC Chitra down, overriding their earlier decision to wash their hands clean of the ship by selling it to the Alang ship-breaking yard.
With the efforts of salvage company Smith Tech, MSC Chitra re-floated safely on March 11. Soon after, the directorate general of shipping (DGS) decided to get rid of the vessel by way of scrapping, and permitted her sending off to Alang ship-breaking yard. However, delay in clearance processes resulted in the mishap. Currently, the ship lay at Alfa anchorage and the salvage company is spending nearly US$2.5L on it per day.
Earlier, when DGS permitted the sale of MSC Chitra at Alang, Smith Tech had promised to escort the vessel as far as Alang -- nearly 200 miles from Mumbai, and the dead vessel, whilst being towed, would have taken just 4 days to cover the distance. But DGS took too much time to provide clearance to her last voyage, which eventually led to the accident on March 19.
If the ship can safely withstand outer anchorage and be re-floated, being currently grounded 30 to 50 meters in deep water, then it could be brought to Alang. However, the sudden decision to sink her in deep water has raised many questions.
Apr 10, 2011
By Mahebub Kureshi
Bhavnagar
DNA
Wires holding MSC Chitra come apart, ship moved away
The ill-fated ship MSC Chitra has been moved 30 nautical miles off the city harbour as the anchor wires holding it came apart during a strong receding tide, the Directorate General of Shipping said today. During the strong "ebb tide" on Saturday (full moon day), the anchor wires holding the vessel afloat were parted. "Fortunately the vessel was manoeuvred safely out of port without damage to other vessels or blocking the channel," a release issued here by the DGS said, adding that MSC Chitra has been moved to a location about 30 nautical miles north of the entrance of Mumbai Port.
Having partially submerged after an accident in August last year, MSC Chitra was refloated only nine days earlier on March 10 and being prepared to be taken to the Alang ship-breaking yard, the DGS said. During the nine days that it was refloated, it was placed on four point moorings while at its new location, salvors were working with two tugs and one salvage barge to ensure safety of the vessel, it added. The salvors are working again to prepare the vessel for beaching at Alang, it said.
MSC Chitra had collided with the in-bound M V Khalija on August 7 last year while exiting the Mumbai harbour, leading to heavy damage to port operations. After the collision the vessel started taking in water and settled on a shallow patch within Mumbai Port Trust, listed heavily and partly submerged.
March 22,2011
PTI
In the continued absence of ship breakers from Bangladesh from market, both India and Pakistan are proving to valuable outlets for cash buyers and owners alike.
New India Assurance asked to pay for ship wreck loss
The Supreme Court has dismissed the appeal of New India Assurance Company which had rejected the claim of a ship-breaking firm for compensation. The firm bought a Belgian vessel and was bringing it from Singapore on its ‘funeral voyage’ to Alang port in Gujarat for demolition. It wrecked on way in high seas due to bad weather.
The ship was covered by marine insurance and the ship-breaker invoked the policy. The insurer rejected the claim leading to litigation in the consumer forum.
The National Consumer Commission asked the insurance company to pay Rs 14 crore with 9 per cent interest to Priya Blue Industries, the scrap dealer in ships. However, the insurer appealed to the Supreme Court.
It ruled that the loss suffered due to the ship wreck was properly assessed by the surveyors and the commission order was correct.
M J Antony
Business Standard
April 04, 2011
Shipbreaking in Bangladesh
Bangladesh ship breakers have got an interim High Court (HC) order issued in their favour on February 27, 2011. The order says, ship import should not be stopped and sought suggestions from parties concerned to facilitate procurement of old scrap vessels.
Sitakundu in Chittagong emerged as the world's largest ship-breaking destination as Bangladeshi importers had beaten their competitors in India and Pakistan to buy the highest number of scrap vessels sold in the international market during 2007, 2008 and 2009 period.
The active ship breaking yards in Sitakundu, 20 kilometres north of the port city Chittagong, dismantled more than 130 ships in 2007.
Bangladesh used to dismantle nearly 50 per cent of the ships sent to scrap-yards across the globe.
07/01/2011
Intelligence Raids Reveals Alang Remains a Fake Document Factory
Press Release
Intelligence Raids Reveals Alang Remains a Fake Document Factory
Dilution of Central Excise Intelligence Opposed
Import of hazardous substances, a Global Threat
New Delhi 7/1/2011: ToxicsWatch Alliance (TWA) welcomes the notification of Director General of Central Excise Intelligence (DGCEI), Union Ministry of Finance seeking change in system of invoicing by ship breakers at Alang, Gujarat to ensure more transparency. This Public Notice No. 01/2010 dated on 26/7/2010 vindicates TWA’s allegations about non-transparency in Alang. The document is attached.
Notably, Directorate of Revenue Intelligence functions under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue has taken note of "problems such as import of hazardous substances that will occupy centre stage in the future as the emerging global threats." In such a context, the notification assumes huge significance as it will end up helping systematic quantification of material flow and help detect and segregate goods of hazardous nature.
On 23rd December, 2010, Mr Raju, Commissioner, Central Excise, Bhavnagar issued a Press Note (attached) referring to “ a number of cases of Revenue leakage in Alang against Ship Breakers of Alang, who fraudulently passed on Cenvat Credit worth crores of Rupees. They were also not showing production, clearance, transportation and Service Tax related information in their statutory records. The investigations are going on and some notices have been issued by ADG (CEI). In order to curb these malpractices, the Public Notice No. 02/2010 was issued on 13.12.2010 by the Central Excise Commissionerate, Bhavnagar. The public notice requires them to maintain certain records which would make it difficult for those who choose to evade duties by clandestine clearances.” The Press Note says that “ around 100-150 persons came to Central Excise, Head Quarters office, Bhavnagar and informed that they were from the Alang Ship Breaking Association”, “they continued shouting slogans and fearing damage to public property, and a as matter of abundant precaution, police force was called to ensure peace and security of the Government office”.
In such a backdrop, TWA has learnt that under pressure due to strike, now DGCEI decided to put the notification seeking change in system of invoicing by the ship breakers for transparency, in abeyance for one month after the intervention of Chief Commissioner, Ahmedabad. The TWA opposes any amendment in the notification and demands that the notification of 13.12.2010 be enforced rigorously both in letter and spirit because it is in compliance of the Supreme Court’s order in the hazardous wastes/shipbreaking case. Most ship breakers who are law abiding support this notification. The case is listed for hearing on 21st January, 2011.
It is noteworthy that Office of the Commissioner of Central Excise & Service Tax, Bhavnagar, Department of Revenue, Union Ministry of Finance issued on 26/7/2010, a Public Notice No. 01/2010 saying, “It has been brought to the notice of this Commissionerate that the Ship Breaking Units situated in Alang, Sosiya and other areas falling within its jurisdiction are not issuing their Central Excise invoices by declaring correct value and description of the scrap, plates etc generated as a result of their manufacturing activities. Investigations recently initiated by Director General of Central Excise Intelligence, Ahmedabad Zonal Unit revealed that the documentation and procedures followed by the ship breaking units are suffering from several infirmities resulting in substantial loss of Government Revenue.” As per power conferred under Central Excise Rules, 2002, it said, “All ship breaking units are directed to discontinue their present system of mentioning general description of ship breaking materials in their invoices. They should declare the correct and full description of the goods...”
For the first time since 14th October, 2003, in compliance of the Supreme Court order, this Public Notice seeks proper inventory saying, “Ship breaking units are also directed that as soon as they complete dismantling and clearance of materials obtained from each imported ship, vessel or any other floating structure, they should submit a statement to the jurisdictional Range Superintendent indicating the LDT of the imported ship, nature of the imported ship [cargo, passenger, tanker etc], total quantity of scrap of each metal obtained and cleared, total quantity of plates of each metal and different sizes [thickness] obtained and cleared, total quantity of each item of non-excisable goods obtained and cleared [wood, furniture, old engine, machinery, stores etc.], and the percentage difference of total weight of goods and materials obtained and cleared vis-a-vis the LDT of the imported ship etc.”
Earlier, the four-day-long strike by ship breakers at Alang happened to protest this notification asking for a ship-wise break-up of material obtained from dismantled vessels. The notification was issued in July 2010 and ship-breakers were asked to periodically submit details of excisable and non-excisable items obtained from the ships they bring for scraping. Ship-breakers were told to maintain ship-to-ship stock register. At present, ship-breakers submit details goods-wise, and not ship-wise. The notification was issued after a multi-crore excise duty evasion ''racket'' at Alang came to light. The ship breakers were allegedly hiding value addition to scrap and were inflating the quantity of items exempted from excise duty. The strike ended on 31st December, 2010 evening after the representatives of ship-breakers met officials of central excise and other departments. The work at Alang yard was resumed on 1st January, 2011. Ship breaking at Alang came to a halt on December 21, 2010 remained suspended for four days in protest of the notification.
Earlier, the Inter-ministerial Committee (IMC) on Ship breaking, Union Ministry of Steel noted in the minutes of its meeting dated 17th September, 2010 that “The Coast Guard representative brought out some security concerns and incidents of communication sets from ships reportedly finding their way to the local fisherman. It was advised to the Ship recyclers to ensure that such equipment are immediately destroyed by the Customs as per the prescribed procedures. The Chairman also advised the Naval, Coast Guard and GMB to regularly interact as per the decisions taken in the earlier IMC meetings and to resolve the major security issues in the Coastal Security Committee meetings conducted at the State Level.”
In its minute dated 4th February 2009, the IMC noted the Security Concerns, saying, “Both the representative of the Coast Guard and the representative from Naval HQ raised concerns over the entry of ships carrying hazardous cargo to Alang for ship breaking and how no information is made available to them regarding the movement of ships to Alang. Besides this there was no information regarding whether the Alang Port is compliant with the International Ship and Port Facility Security (ISPS) Code. In the context of the present security concerns in the country, the Chairman advised the representative of the Ministry of Shipping, the GMB officials, the Coast Guard representative and the Naval HQs to address the issue expeditiously so that the security gaps are taken care of and also to verify whether the port at Alang has implemented the ISPS codes. The Coast Guard representative and the Naval HQ representative also expressed apprehensions that the vessels coming in for beaching sometimes ply very close to the oil rigs, which could be a potential for accidents.”
It also mentions that the Chairman of the IMC “directed that the Ministry of Shipping may organize a meeting on the matter with GMB, Naval HQ and Coast Guard HQ, Custom etc. immediately and ensure that gaps in the security frame-work issues are addressed immediately.” No action has been taken so far to plug the existing the loop holes.
On the issue of radioactive materials raised by TWA, it observes, “Regarding report of a huge quantity of Smoke Detectors containing radioactive material lying in the Plots at Alang, the AERB informed that due to large volume of non-radioactive materials contained in the smoke detectors, it is difficult for them to accept the material in the present shape for disposal at the BARC facility.” The issue remains unresolved so far.
Even as the Union Steel Ministry is seized with the issue of 58 page Draft Code on Regulations for Safe and Environmentally Sound Ship Recycling prepared in compliance of the Supreme Court's order dated September 6, 2007 to improve the situation, death toll of migrant workers from Bihar, UP, Jharkhand and Orissa in Alang underlines the fact of non-improvement on the Alang beach. In the year 2010 alone, some 20 workers have died while at work. Most of the workers are poor migrants work in a hazardous and toxic working environment. Meanwhile, the ongoing contamination of once pristine Alang beach is yet to see the sight of any effort to remediate the site and take the hazardous industrial activity off the beach, away from coastal environment. Alang is a litmus test for government’s sensitivity towards country’s environmental borders in which it has failed miserably so far.
While such state of affairs prevails, 348 ships were dismantled without complying with environmental and occupational health regulations and Supreme Court’s order in 2010. Since 1983, Alang has so far dismantled 5,200 ships. There are a total of 127 private ship-breaking plots at Alang. The theft of excise duty has been going on for a very long time.
For Details: Gopal Krishna, ToxicsWatch Alliance, Mb: 9818089660, E-mail: krishna2777@gmail.com, Web: imowatch.blogspot.com
Intelligence Raids Reveals Alang Remains a Fake Document Factory
Dilution of Central Excise Intelligence Opposed
Import of hazardous substances, a Global Threat
New Delhi 7/1/2011: ToxicsWatch Alliance (TWA) welcomes the notification of Director General of Central Excise Intelligence (DGCEI), Union Ministry of Finance seeking change in system of invoicing by ship breakers at Alang, Gujarat to ensure more transparency. This Public Notice No. 01/2010 dated on 26/7/2010 vindicates TWA’s allegations about non-transparency in Alang. The document is attached.
Notably, Directorate of Revenue Intelligence functions under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue has taken note of "problems such as import of hazardous substances that will occupy centre stage in the future as the emerging global threats." In such a context, the notification assumes huge significance as it will end up helping systematic quantification of material flow and help detect and segregate goods of hazardous nature.
On 23rd December, 2010, Mr Raju, Commissioner, Central Excise, Bhavnagar issued a Press Note (attached) referring to “ a number of cases of Revenue leakage in Alang against Ship Breakers of Alang, who fraudulently passed on Cenvat Credit worth crores of Rupees. They were also not showing production, clearance, transportation and Service Tax related information in their statutory records. The investigations are going on and some notices have been issued by ADG (CEI). In order to curb these malpractices, the Public Notice No. 02/2010 was issued on 13.12.2010 by the Central Excise Commissionerate, Bhavnagar. The public notice requires them to maintain certain records which would make it difficult for those who choose to evade duties by clandestine clearances.” The Press Note says that “ around 100-150 persons came to Central Excise, Head Quarters office, Bhavnagar and informed that they were from the Alang Ship Breaking Association”, “they continued shouting slogans and fearing damage to public property, and a as matter of abundant precaution, police force was called to ensure peace and security of the Government office”.
In such a backdrop, TWA has learnt that under pressure due to strike, now DGCEI decided to put the notification seeking change in system of invoicing by the ship breakers for transparency, in abeyance for one month after the intervention of Chief Commissioner, Ahmedabad. The TWA opposes any amendment in the notification and demands that the notification of 13.12.2010 be enforced rigorously both in letter and spirit because it is in compliance of the Supreme Court’s order in the hazardous wastes/shipbreaking case. Most ship breakers who are law abiding support this notification. The case is listed for hearing on 21st January, 2011.
It is noteworthy that Office of the Commissioner of Central Excise & Service Tax, Bhavnagar, Department of Revenue, Union Ministry of Finance issued on 26/7/2010, a Public Notice No. 01/2010 saying, “It has been brought to the notice of this Commissionerate that the Ship Breaking Units situated in Alang, Sosiya and other areas falling within its jurisdiction are not issuing their Central Excise invoices by declaring correct value and description of the scrap, plates etc generated as a result of their manufacturing activities. Investigations recently initiated by Director General of Central Excise Intelligence, Ahmedabad Zonal Unit revealed that the documentation and procedures followed by the ship breaking units are suffering from several infirmities resulting in substantial loss of Government Revenue.” As per power conferred under Central Excise Rules, 2002, it said, “All ship breaking units are directed to discontinue their present system of mentioning general description of ship breaking materials in their invoices. They should declare the correct and full description of the goods...”
For the first time since 14th October, 2003, in compliance of the Supreme Court order, this Public Notice seeks proper inventory saying, “Ship breaking units are also directed that as soon as they complete dismantling and clearance of materials obtained from each imported ship, vessel or any other floating structure, they should submit a statement to the jurisdictional Range Superintendent indicating the LDT of the imported ship, nature of the imported ship [cargo, passenger, tanker etc], total quantity of scrap of each metal obtained and cleared, total quantity of plates of each metal and different sizes [thickness] obtained and cleared, total quantity of each item of non-excisable goods obtained and cleared [wood, furniture, old engine, machinery, stores etc.], and the percentage difference of total weight of goods and materials obtained and cleared vis-a-vis the LDT of the imported ship etc.”
Earlier, the four-day-long strike by ship breakers at Alang happened to protest this notification asking for a ship-wise break-up of material obtained from dismantled vessels. The notification was issued in July 2010 and ship-breakers were asked to periodically submit details of excisable and non-excisable items obtained from the ships they bring for scraping. Ship-breakers were told to maintain ship-to-ship stock register. At present, ship-breakers submit details goods-wise, and not ship-wise. The notification was issued after a multi-crore excise duty evasion ''racket'' at Alang came to light. The ship breakers were allegedly hiding value addition to scrap and were inflating the quantity of items exempted from excise duty. The strike ended on 31st December, 2010 evening after the representatives of ship-breakers met officials of central excise and other departments. The work at Alang yard was resumed on 1st January, 2011. Ship breaking at Alang came to a halt on December 21, 2010 remained suspended for four days in protest of the notification.
Earlier, the Inter-ministerial Committee (IMC) on Ship breaking, Union Ministry of Steel noted in the minutes of its meeting dated 17th September, 2010 that “The Coast Guard representative brought out some security concerns and incidents of communication sets from ships reportedly finding their way to the local fisherman. It was advised to the Ship recyclers to ensure that such equipment are immediately destroyed by the Customs as per the prescribed procedures. The Chairman also advised the Naval, Coast Guard and GMB to regularly interact as per the decisions taken in the earlier IMC meetings and to resolve the major security issues in the Coastal Security Committee meetings conducted at the State Level.”
In its minute dated 4th February 2009, the IMC noted the Security Concerns, saying, “Both the representative of the Coast Guard and the representative from Naval HQ raised concerns over the entry of ships carrying hazardous cargo to Alang for ship breaking and how no information is made available to them regarding the movement of ships to Alang. Besides this there was no information regarding whether the Alang Port is compliant with the International Ship and Port Facility Security (ISPS) Code. In the context of the present security concerns in the country, the Chairman advised the representative of the Ministry of Shipping, the GMB officials, the Coast Guard representative and the Naval HQs to address the issue expeditiously so that the security gaps are taken care of and also to verify whether the port at Alang has implemented the ISPS codes. The Coast Guard representative and the Naval HQ representative also expressed apprehensions that the vessels coming in for beaching sometimes ply very close to the oil rigs, which could be a potential for accidents.”
It also mentions that the Chairman of the IMC “directed that the Ministry of Shipping may organize a meeting on the matter with GMB, Naval HQ and Coast Guard HQ, Custom etc. immediately and ensure that gaps in the security frame-work issues are addressed immediately.” No action has been taken so far to plug the existing the loop holes.
On the issue of radioactive materials raised by TWA, it observes, “Regarding report of a huge quantity of Smoke Detectors containing radioactive material lying in the Plots at Alang, the AERB informed that due to large volume of non-radioactive materials contained in the smoke detectors, it is difficult for them to accept the material in the present shape for disposal at the BARC facility.” The issue remains unresolved so far.
Even as the Union Steel Ministry is seized with the issue of 58 page Draft Code on Regulations for Safe and Environmentally Sound Ship Recycling prepared in compliance of the Supreme Court's order dated September 6, 2007 to improve the situation, death toll of migrant workers from Bihar, UP, Jharkhand and Orissa in Alang underlines the fact of non-improvement on the Alang beach. In the year 2010 alone, some 20 workers have died while at work. Most of the workers are poor migrants work in a hazardous and toxic working environment. Meanwhile, the ongoing contamination of once pristine Alang beach is yet to see the sight of any effort to remediate the site and take the hazardous industrial activity off the beach, away from coastal environment. Alang is a litmus test for government’s sensitivity towards country’s environmental borders in which it has failed miserably so far.
While such state of affairs prevails, 348 ships were dismantled without complying with environmental and occupational health regulations and Supreme Court’s order in 2010. Since 1983, Alang has so far dismantled 5,200 ships. There are a total of 127 private ship-breaking plots at Alang. The theft of excise duty has been going on for a very long time.
For Details: Gopal Krishna, ToxicsWatch Alliance, Mb: 9818089660, E-mail: krishna2777@gmail.com, Web: imowatch.blogspot.com
23/12/2010
Central govt acts tough, shipbreakers go on strike in Alang
The strike by shipbreakers in Alang has brought shipbreaking activities to a halt from 21st December with the ship-breakers protesting a notification issued by Central Excise (CE), Government of India that seeks a ship-wise break-up. The strike has continued for the third day.
The strike by ship-breakers is an attempt to pressurize the the central government. They protesting on the grounds that as they dismantled more than one ship at a time, it was not possible to furnish ship-wise details of material obtained.
This notification was issued on 26 July, 2010 where ship-breakers were asked to periodically give details of excisable and non-excisable items obtained from the ships they bring for scraping. This was after CE's intelligence wing had found large scale duty evasion by some ship breakers who used to inflate the quantity of non-excisable items.
ToxicsWatch Alliance feels that the excise officials are right in saying that the ship-breakers were not complying with all the requirements of the notification.
The Central Excise duties are the largest source of revenue for the country. Approximately 30% of the total revenue receipts are collected from Central Excise duties. The levy and collection of Central Excise duties is under the authority of Central Excise Act, 1944. Section 3 provides for the levy and collection of Central Excise duty.
The rate and amount of duty as well as the items on which duties are levied are those which are indicated in the Central Excise Tariff Act, 1985 and the schedule therein. The taxable event for Central Excise duty as per Section 3 of CEA (Central Excise Act) 1944 is the manufacture or production of goods.
It means that Central Excise duty is leviable as soon as the goods are manufactured or produced. The items on which the excise duty is levied are known as excisable goods.
For the purpose of administrative convenience the actual collection of duty is done at the time of removal of goods from the place of manufacture of production. The rate of duty, which is levied, is the rate of duty applicable to such goods or which is in force at the time of actual removal.
The strike by ship-breakers is an attempt to pressurize the the central government. They protesting on the grounds that as they dismantled more than one ship at a time, it was not possible to furnish ship-wise details of material obtained.
This notification was issued on 26 July, 2010 where ship-breakers were asked to periodically give details of excisable and non-excisable items obtained from the ships they bring for scraping. This was after CE's intelligence wing had found large scale duty evasion by some ship breakers who used to inflate the quantity of non-excisable items.
ToxicsWatch Alliance feels that the excise officials are right in saying that the ship-breakers were not complying with all the requirements of the notification.
The Central Excise duties are the largest source of revenue for the country. Approximately 30% of the total revenue receipts are collected from Central Excise duties. The levy and collection of Central Excise duties is under the authority of Central Excise Act, 1944. Section 3 provides for the levy and collection of Central Excise duty.
The rate and amount of duty as well as the items on which duties are levied are those which are indicated in the Central Excise Tariff Act, 1985 and the schedule therein. The taxable event for Central Excise duty as per Section 3 of CEA (Central Excise Act) 1944 is the manufacture or production of goods.
It means that Central Excise duty is leviable as soon as the goods are manufactured or produced. The items on which the excise duty is levied are known as excisable goods.
For the purpose of administrative convenience the actual collection of duty is done at the time of removal of goods from the place of manufacture of production. The rate of duty, which is levied, is the rate of duty applicable to such goods or which is in force at the time of actual removal.
04/12/2010
Shipbreakers face raid by Economic Intelligence Wing
ToxicsWatch Alliance expresses its appreciation for the notification issued by Director General of Central Excise Intelligence (DGCEI), Government of India seeking ship-wise break-up of material obtained from dismantled vessels. This notification is in compliance of the Supreme Court's order which has been flouted for quite a while.
DGCEI has unearthed a multi-crore duty evasion at Alang. The ship breakers have been hiding value addition to scrap and were inflating the quantity of items exempted from excise duty.
Alang has been under the scanner of the DGCEI for massive evasion of excise duty and issuing fake Cenvat invoices.
The industry has been involved in this scam along with furnace units. Its a scam of Rs 150 crore - 200 crore a year.
A search operation was conducted by Ahmedabad zonal unit of DGCEI at 18 premises belonging to 11 major industrial groups engaged in ship-breaking in Alang. The operation resulted in recovery of incriminating documents pointing towards large-scale under-valuation of excise duty as well as issuing of fake Cenvat invoices. Alang for long has reputation of being a fake document factory.
DGCEI estimates that the ship-breaking units evade excise duty and other taxes by undervaluing their scrap by over 30%. Fake Cenvat invoices were issued without actual movement of scrap to enable their buyers avail fraudulent Cenvat credit of duty. The scrap recovered from ship-breaking is mostly used by re-rolling units, which avail SSI exemption, and do not require Cenvat invoices. Many induction furnace units across the country do not avail SSI exemption and require Cenvat invoices for input credit of duty.
"The invoices and goods of ship-breaking units of Alang are traded separately and that too at a premium. The scrap generated is delivered to re-rolling units, while Cenvat invoices are sold to furnace units without movement of goods," explained DGCEI officials.
The notification has been enforced after officials at Director General of Central Excise Intelligence noticed that except for a few units, most ship-breakers were ready to comply with the new rule.
Directorate General of Central Excise Intelligence (DGCEI) is the apex intelligence organization functioning under the Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, entrusted with detection of cases of evasion of duties of Central Excise and Service Tax. The Directorate General is headed by Director General. The role of the Directorate General in tackling the menace of duty evasion is manifold. It develops intelligence, especially in new areas of tax evasion through its intelligence network across the country and disseminates information in this respect, by issuing Modus Operandi Circulars and Alert Circulars to appraise field formations of the latest trends in duty evasion. Wherever found necessary, this Directorate General on its own, or in co-ordination with field formations, organises operations to unearth evasion of central excise duty and service tax. In 2004, DGCEI was entrusted with the work of detecting evasion in service tax.
Directorate General of Central Excise Intelligence (DGCEI) was earlier known as Directorate General of Anti-Evasion (DGAE). It was established in the year 1979 as an independent wing under the control of Directorate of Revenue Intelligence, New Delhi with regional units located at Chennai, Delhi, Kolkata and Mumbai. It became a full-fledged Directorate in 1983 headed by a Director. In 1988, the Directorate was upgraded to Directorate General under a Director General with four Zonal Units located at Chennai, Delhi, Kolkata and Mumbai headed by Additional Director General.
The Directorate General was expanded in the year 2000 with the setting up of a number of Regional Units under the respective Zonal Units and was renamed as DGCEI. DGCEI was re-strengthened in the year 2002 with the addition of two more Zones at Ahmedabad and Bangalore. At present DGCEI, with its Headquarters at New Delhi, has 6 Zonal Units and 18 Regional Units.
Directorate of Revenue Intelligence functions under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue has taken note of "problems such as import of hazardous substances that will occupy centre stage in the future as the emerging global threats."
Directorate of Revenue Intelligence in its present form is a lean organisation charged essentially with the collection of intelligence, its analysis, collation, interpretation and dissemination on matters relating to violations of customs laws, and to a lesser extent, anti-narcotics law. In order to ensure effective discharge of its responsibilities, DRI maintains close liaison with all the important enforcement agencies in India like the Central Economic Intelligence Bureau, Income-Tax department, Enforcement Directorate, Narcotics Control Bureau, Directorate General of Foreign Trade, Border Security Force, Central Bureau of Investigation, Coast Guard, the State Police authorities and also with all the Customs and Central Excise Commissionerates. It also maintains close liaison with the World Customs Organisation, Brussels, the Regional Intelligence Liaison Office at Tokyo, INTERPOL and foreign Customs Administrations.
Directorate of Revenue Intelligence functions under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue. Headed by Director General in New Delhi, it is presently divided into seven zones, each under the charge of an Additional Director General, and further sub-divided into Regional Units, Sub-Regional Units and Intelligence Cells with a complement of Additional Directors, Joint Directors, Deputy Directors, Assistant Directors, Senior Intelligence Officers and Intelligence Officers.
More information about the raid by DGCEI, New Delhi on shipbreakers of Alang to follow shortly.
DGCEI has unearthed a multi-crore duty evasion at Alang. The ship breakers have been hiding value addition to scrap and were inflating the quantity of items exempted from excise duty.
Alang has been under the scanner of the DGCEI for massive evasion of excise duty and issuing fake Cenvat invoices.
The industry has been involved in this scam along with furnace units. Its a scam of Rs 150 crore - 200 crore a year.
A search operation was conducted by Ahmedabad zonal unit of DGCEI at 18 premises belonging to 11 major industrial groups engaged in ship-breaking in Alang. The operation resulted in recovery of incriminating documents pointing towards large-scale under-valuation of excise duty as well as issuing of fake Cenvat invoices. Alang for long has reputation of being a fake document factory.
DGCEI estimates that the ship-breaking units evade excise duty and other taxes by undervaluing their scrap by over 30%. Fake Cenvat invoices were issued without actual movement of scrap to enable their buyers avail fraudulent Cenvat credit of duty. The scrap recovered from ship-breaking is mostly used by re-rolling units, which avail SSI exemption, and do not require Cenvat invoices. Many induction furnace units across the country do not avail SSI exemption and require Cenvat invoices for input credit of duty.
"The invoices and goods of ship-breaking units of Alang are traded separately and that too at a premium. The scrap generated is delivered to re-rolling units, while Cenvat invoices are sold to furnace units without movement of goods," explained DGCEI officials.
The notification has been enforced after officials at Director General of Central Excise Intelligence noticed that except for a few units, most ship-breakers were ready to comply with the new rule.
Directorate General of Central Excise Intelligence (DGCEI) is the apex intelligence organization functioning under the Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, entrusted with detection of cases of evasion of duties of Central Excise and Service Tax. The Directorate General is headed by Director General. The role of the Directorate General in tackling the menace of duty evasion is manifold. It develops intelligence, especially in new areas of tax evasion through its intelligence network across the country and disseminates information in this respect, by issuing Modus Operandi Circulars and Alert Circulars to appraise field formations of the latest trends in duty evasion. Wherever found necessary, this Directorate General on its own, or in co-ordination with field formations, organises operations to unearth evasion of central excise duty and service tax. In 2004, DGCEI was entrusted with the work of detecting evasion in service tax.
Directorate General of Central Excise Intelligence (DGCEI) was earlier known as Directorate General of Anti-Evasion (DGAE). It was established in the year 1979 as an independent wing under the control of Directorate of Revenue Intelligence, New Delhi with regional units located at Chennai, Delhi, Kolkata and Mumbai. It became a full-fledged Directorate in 1983 headed by a Director. In 1988, the Directorate was upgraded to Directorate General under a Director General with four Zonal Units located at Chennai, Delhi, Kolkata and Mumbai headed by Additional Director General.
The Directorate General was expanded in the year 2000 with the setting up of a number of Regional Units under the respective Zonal Units and was renamed as DGCEI. DGCEI was re-strengthened in the year 2002 with the addition of two more Zones at Ahmedabad and Bangalore. At present DGCEI, with its Headquarters at New Delhi, has 6 Zonal Units and 18 Regional Units.
Directorate of Revenue Intelligence functions under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue has taken note of "problems such as import of hazardous substances that will occupy centre stage in the future as the emerging global threats."
Directorate of Revenue Intelligence in its present form is a lean organisation charged essentially with the collection of intelligence, its analysis, collation, interpretation and dissemination on matters relating to violations of customs laws, and to a lesser extent, anti-narcotics law. In order to ensure effective discharge of its responsibilities, DRI maintains close liaison with all the important enforcement agencies in India like the Central Economic Intelligence Bureau, Income-Tax department, Enforcement Directorate, Narcotics Control Bureau, Directorate General of Foreign Trade, Border Security Force, Central Bureau of Investigation, Coast Guard, the State Police authorities and also with all the Customs and Central Excise Commissionerates. It also maintains close liaison with the World Customs Organisation, Brussels, the Regional Intelligence Liaison Office at Tokyo, INTERPOL and foreign Customs Administrations.
Directorate of Revenue Intelligence functions under the Central Board of Excise and Customs in the Ministry of Finance, Department of Revenue. Headed by Director General in New Delhi, it is presently divided into seven zones, each under the charge of an Additional Director General, and further sub-divided into Regional Units, Sub-Regional Units and Intelligence Cells with a complement of Additional Directors, Joint Directors, Deputy Directors, Assistant Directors, Senior Intelligence Officers and Intelligence Officers.
More information about the raid by DGCEI, New Delhi on shipbreakers of Alang to follow shortly.
28/10/2010
Alang’s death yard breaking news again
LAST WEEK 28-year-old Janardhan Choudhary became this year’s 24th fatality at the world’s largest ship-breaking yard in Alang, Gujarat. Local NGOs, however, claim that the figure is more than double that.
Such deaths have been routinely ignored by vessel owners and officials of the regulator, the Gujarat Maritime Board (GMB). But this time the news reached the Inter-Ministerial Committee (IMC) on ship-breaking, a wing of the steel ministry. And soon the Prime Minister’s Office was seeking details of the case from Dalip Singh, joint secretary at the ministry, about how the IMC planned to handle the crisis.
Central to the issue is the ministry draft code on safe ship recycling that was prepared following a Supreme Court order three years ago, but which vessel owners continue to pass over. A top GMB official rubbished the charges, claiming that the deaths had been meticulously reported by the board. “We do push ship-breakers to comply with all the regulations. But accidents can always happen,” GMB vice-chairman Pankaj Kumar said over the telephone.
Sources say 50-70 workers die every year at Alang. Alarmed, a Central government team led by Singh and S Machendranathan, additional secretary and financial adviser to the steel ministry, visited Alang last month and issued strict directions to the GMB and the ship-breakers to improve the working and living conditions of the roughly 5,000 workers at the yard.
Earlier this year, Okechukwu Ibeanu of the UN Human Rights Council, a special rapporteur on the baneful impact of the movement and dumping of toxic and hazardous products, had been shocked to see the appalling conditions in which the workers at Alang lived.
There are also concerns over environmental damage — about the reportedly chaotic manner in which beaching, cutting and shipbreaking in the inter-tidal zone are done. “It has long been obvious to experts that in such a zone these can never be done without harming the environment,” says Gopal Krishna of ToxicsWatch Alliance that works closely with the workers at Alang.
According to him, it is simply not possible to contain pollutants on a tidal beach where hulls of ships are often breached, or toxic paints erode, releasing organic pollutants, heavy metals and oils onto the beach and into the sea. But the ship-breakers have a different take on this. “The wet sand surface makes it impossible to install emergency gear in the hull,” argues Pravin Nagarsheth, president, Iron and Steel Scrap Association of India.
Now what does the regulator have to say on that?
Source: Tehelka Magazine, Vol 7, Issue 43, Dated October 30, 2010
Code of conduct for ship-breaking yards
Kunal Bose / October 26, 2010
Business Standard
The other day in a stormy evening, three workers at a ship breaking yard at Sitakundu in the Chittagong district of Bangladesh were crushed to death as a heavy steel plate fell on them. In nearly past two decades, no less than 500 workers were killed in accidents while at work at Sitakundu, home to the world’s second largest ship breaking yard after Alang along the Arabian Sea coast in Gujarat. This Bangladeshi toll is exclusive of many deaths, mostly unrecorded, caused by handling of hazardous waste materials and emission of toxic fumes.
Arguably, the scene at Alang was equally despicable till the Supreme Court started issuing orders to the government to ensure the safety, health and welfare of ship-breaking workers. The ministry of steel, again under the court directive, is formulating a code of conduct for the yards incorporating the recommendations of a committee of technical experts. A common problem of India and Bangladesh is that in spite court directives, ship-breaking yards, which were a law unto themselves till some time ago, are still prone to breaking rules. That’s why workers get killed or injured at yards not infrequently and areas in and around Alang and Sitakundu remain dangerously polluted. The scene is no different at Pakistan’s Gadani ship-breaking yard either.
NGOs and environment activists would want such yards to be shut. But since condemned ships are a good source of clean ferrous scrap good for direct rerolling into new steel products, governments of the three countries would rather subject yard owners in boundaries of discipline than go for yard closure. A Bangladeshi minister has made the government’s policy choice clear by saying that “our closing down the ship-breaking yard will turn the country into a market for foreign ironmongers. We are trying to create a separate zone for the industry in line with the prime minister’s directive.” India looks at the ship-breaking industry more or less in the same way.
According to G K Basak, executive secretary of Joint Plant Committee of the steel ministry, of India’s annual requirements of up to 12 million tonnes of ferrous scrap, as much as 3.5 million tonnes this year will come from dismantled ships, against 3 million tonnes in 2009-10. The generation of good quality rerollable steel in large quantities when ocean going ships are beached and dismantled underpins the importance of ship-breaking industry, its present pitfalls notwithstanding. While scrap steel originating in ships is the favoured feedstock for many rerolling units here, nearly 200 rerollers in Bangladesh depend heavily on about 2 million scrap generated at Sitakundu. Gadani generated over 850,000 tonnes of scrap last year for use by Pakistan’s rerolling industry.
Over 65 per cent of steel recovered from a condemned ship comes good for rerolling. But why so? This is because rerolling of ship plates require reheating of only up to 1,000 degree centigrade and that greatly restricts scale formation. Ship steel, as rerollers say, has fine grains giving it a good corrosion resistance character. A steel ministry paper says shapes and sections rerolled from ship steel are largely immune from physical defects like seams, internal cracks and furnace burns. Rebars made from low ductility ship steel lend themselves well to intensive cold twisting. Ship steel not found good for rerolling goes for melting.
Roughly 45,000 ocean going ships are floating on waters and each year up to 1,000 ships are beached. Ships remain seaworthy for up to 25 years. But there is a general tendency among ship owners to keep their vessels afloat beyond their useful life when the freight market stays buoyant. Like other sectors, freight market bore the burden of both financial crisis followed by downturn in world trade. Baltic main index continues to behave erratically. Shipping will always be impacted by what happens to the global economy, for nearly 90 per cent of traded goods globally are transported by sea.
In any case, at all times the three countries in this sub-continent will remain locked in competition to buy old ships. Ship-breaking, though it has a murky past, has an important bearing on the coastal economy of India, Bangladesh and Pakistan. It is a highly labour intensive operation providing jobs to both skilled and unskilled workers. The units at Alang accounting for over 90 per cent of the industry, provide employment to over a lakh of people. More than the revenue consideration for the government, what is important is that to the extent ship steel is generated and recycled either through rerollers or furnaces leads to conservation of iron ore, coal and energy.
This industry cannot be wished away. But at the same time strict vigilance of the work of ship breakers is called for. The government should also nudge them to use modern fuel based torches, mechanical cutters, detonation charges for handling very thick metal and cranes for transfer of steel and other materials. Why should the workers be pressured to carry heavy metal plates endangering their lives? Every time a ship is to be broken, it must have a comprehensive dismantling plan from the superstructure to the hull.
Such deaths have been routinely ignored by vessel owners and officials of the regulator, the Gujarat Maritime Board (GMB). But this time the news reached the Inter-Ministerial Committee (IMC) on ship-breaking, a wing of the steel ministry. And soon the Prime Minister’s Office was seeking details of the case from Dalip Singh, joint secretary at the ministry, about how the IMC planned to handle the crisis.
Central to the issue is the ministry draft code on safe ship recycling that was prepared following a Supreme Court order three years ago, but which vessel owners continue to pass over. A top GMB official rubbished the charges, claiming that the deaths had been meticulously reported by the board. “We do push ship-breakers to comply with all the regulations. But accidents can always happen,” GMB vice-chairman Pankaj Kumar said over the telephone.
Sources say 50-70 workers die every year at Alang. Alarmed, a Central government team led by Singh and S Machendranathan, additional secretary and financial adviser to the steel ministry, visited Alang last month and issued strict directions to the GMB and the ship-breakers to improve the working and living conditions of the roughly 5,000 workers at the yard.
Earlier this year, Okechukwu Ibeanu of the UN Human Rights Council, a special rapporteur on the baneful impact of the movement and dumping of toxic and hazardous products, had been shocked to see the appalling conditions in which the workers at Alang lived.
There are also concerns over environmental damage — about the reportedly chaotic manner in which beaching, cutting and shipbreaking in the inter-tidal zone are done. “It has long been obvious to experts that in such a zone these can never be done without harming the environment,” says Gopal Krishna of ToxicsWatch Alliance that works closely with the workers at Alang.
According to him, it is simply not possible to contain pollutants on a tidal beach where hulls of ships are often breached, or toxic paints erode, releasing organic pollutants, heavy metals and oils onto the beach and into the sea. But the ship-breakers have a different take on this. “The wet sand surface makes it impossible to install emergency gear in the hull,” argues Pravin Nagarsheth, president, Iron and Steel Scrap Association of India.
Now what does the regulator have to say on that?
Source: Tehelka Magazine, Vol 7, Issue 43, Dated October 30, 2010
Code of conduct for ship-breaking yards
Kunal Bose / October 26, 2010
Business Standard
The other day in a stormy evening, three workers at a ship breaking yard at Sitakundu in the Chittagong district of Bangladesh were crushed to death as a heavy steel plate fell on them. In nearly past two decades, no less than 500 workers were killed in accidents while at work at Sitakundu, home to the world’s second largest ship breaking yard after Alang along the Arabian Sea coast in Gujarat. This Bangladeshi toll is exclusive of many deaths, mostly unrecorded, caused by handling of hazardous waste materials and emission of toxic fumes.
Arguably, the scene at Alang was equally despicable till the Supreme Court started issuing orders to the government to ensure the safety, health and welfare of ship-breaking workers. The ministry of steel, again under the court directive, is formulating a code of conduct for the yards incorporating the recommendations of a committee of technical experts. A common problem of India and Bangladesh is that in spite court directives, ship-breaking yards, which were a law unto themselves till some time ago, are still prone to breaking rules. That’s why workers get killed or injured at yards not infrequently and areas in and around Alang and Sitakundu remain dangerously polluted. The scene is no different at Pakistan’s Gadani ship-breaking yard either.
NGOs and environment activists would want such yards to be shut. But since condemned ships are a good source of clean ferrous scrap good for direct rerolling into new steel products, governments of the three countries would rather subject yard owners in boundaries of discipline than go for yard closure. A Bangladeshi minister has made the government’s policy choice clear by saying that “our closing down the ship-breaking yard will turn the country into a market for foreign ironmongers. We are trying to create a separate zone for the industry in line with the prime minister’s directive.” India looks at the ship-breaking industry more or less in the same way.
According to G K Basak, executive secretary of Joint Plant Committee of the steel ministry, of India’s annual requirements of up to 12 million tonnes of ferrous scrap, as much as 3.5 million tonnes this year will come from dismantled ships, against 3 million tonnes in 2009-10. The generation of good quality rerollable steel in large quantities when ocean going ships are beached and dismantled underpins the importance of ship-breaking industry, its present pitfalls notwithstanding. While scrap steel originating in ships is the favoured feedstock for many rerolling units here, nearly 200 rerollers in Bangladesh depend heavily on about 2 million scrap generated at Sitakundu. Gadani generated over 850,000 tonnes of scrap last year for use by Pakistan’s rerolling industry.
Over 65 per cent of steel recovered from a condemned ship comes good for rerolling. But why so? This is because rerolling of ship plates require reheating of only up to 1,000 degree centigrade and that greatly restricts scale formation. Ship steel, as rerollers say, has fine grains giving it a good corrosion resistance character. A steel ministry paper says shapes and sections rerolled from ship steel are largely immune from physical defects like seams, internal cracks and furnace burns. Rebars made from low ductility ship steel lend themselves well to intensive cold twisting. Ship steel not found good for rerolling goes for melting.
Roughly 45,000 ocean going ships are floating on waters and each year up to 1,000 ships are beached. Ships remain seaworthy for up to 25 years. But there is a general tendency among ship owners to keep their vessels afloat beyond their useful life when the freight market stays buoyant. Like other sectors, freight market bore the burden of both financial crisis followed by downturn in world trade. Baltic main index continues to behave erratically. Shipping will always be impacted by what happens to the global economy, for nearly 90 per cent of traded goods globally are transported by sea.
In any case, at all times the three countries in this sub-continent will remain locked in competition to buy old ships. Ship-breaking, though it has a murky past, has an important bearing on the coastal economy of India, Bangladesh and Pakistan. It is a highly labour intensive operation providing jobs to both skilled and unskilled workers. The units at Alang accounting for over 90 per cent of the industry, provide employment to over a lakh of people. More than the revenue consideration for the government, what is important is that to the extent ship steel is generated and recycled either through rerollers or furnaces leads to conservation of iron ore, coal and energy.
This industry cannot be wished away. But at the same time strict vigilance of the work of ship breakers is called for. The government should also nudge them to use modern fuel based torches, mechanical cutters, detonation charges for handling very thick metal and cranes for transfer of steel and other materials. Why should the workers be pressured to carry heavy metal plates endangering their lives? Every time a ship is to be broken, it must have a comprehensive dismantling plan from the superstructure to the hull.
SOUTH ASIAN SCRAPPING BEACH UNDER SCRUTINY BY U.S. OFFICIALS
BP’s SCHEME TO DUMP TOXIC SHIP ON SOUTH ASIAN SCRAPPING BEACH UNDER SCRUTINY BY U.S. OFFICIALS
28 October 2010. Seattle, USA. – According to the toxic watchdog organization Basel Action Network (BAN), a U.S. flagged oil tanker named Prince William Sound, one that is part owned by BP and formerly was used to haul BP oil, is about to be sold for scrapping on the notorious shipbreaking beaches in South Asia. The ship, built in 1975 and whose namesake and owner are all too familiar reminders of recent environmental disasters, is likely to contain toxic wastes such as asbestos, polychlorinated biphenyls (PCBs) and other hazardous substances, and as such poses a threat to workers and the environment should it be exported to a developing country.
The vessel is reportedly moored now in a BP shipping depot in Malaysia, and its transfer is imminent. If the U.S. government fails to quickly intervene, the ship could be run up on the beaches of India, Bangladesh or Pakistan within days, where impoverished laborers break down ships by hand, subjecting them to explosions, accidents and occupational disease from exposure to toxic substances. This “beaching” method of scrapping ships is also devastating to local environments due to pollution and mangrove forest destruction undertaken to make room for the ships.
According to officials at the United States Maritime Administration (MARAD), the sale must first be approved by them based in part by a determination by the U.S. Environmental Protection Agency (EPA) that the export will not violate the Toxic Substances Control Act (TSCA) or other environmental laws. They have been notified by the ship’s owners (it is 25% owned by BP) of their intent to sell the vessel for scrap to a cash-buyer, a middleman who allows companies like BP to both sidestep controversy and avoid direct sales to Asian shipbreaking yards and also make a large profit by avoiding responsible and more expensive ship recycling in the U.S. or another developed country.
“BP is proving once again a callous disregard for people and the environment,” said BAN’s Green Ship Recycling Campaign Director, Colby Self. “The EPA and MARAD must step in now and prevent what could be another BP-sponsored environmental disaster.”
Unlike BP, Chevron opted this year to recycle two of its tankers in Brownsville, Texas, in accordance with strict U.S. environmental and labor protection laws. Chevron’s environmentally responsible ship disposal decisions in 2010 generated U.S. green recycling jobs at a time when U.S. jobs are much needed.
Due to the year of construction, the Prince William Sound likely contains PCBs, asbestos of other hazardous materials within its construction. The EPA has noted, “Although no longer commercially produced in the United States, PCBs are most likely to be present in vessels deployed before the 1979 PCB ban." [1] The Toxic Substances Control Act (TSCA), in force since 1979, prohibits the export of PCB contaminated material for disposal purposes. However, the U.S. EPA has long struggled to enforce TSCA against shipping industry violators, particularly when vessels operate outside U.S. waters and beyond EPA jurisdiction.
MARAD is required by law to authorize the foreign scrapping and reflagging to foreign registry of all U.S. flagged vessels; but in past years, BAN’s protests have revealed that MARAD’s review neglected to consider the potential violation of laws that were enforceable by agencies outside MARAD’s jurisdiction. As a result, many U.S. vessels were reflagged and sold or scrapped abroad in violation of TSCA. Now, MARAD and EPA have established a new process of review in which MARAD seeks EPA judgment to ensure compliance with TSCA prior to any reflagging or foreign scrapping authorization.
“The new Maritime Administration should be applauded for promising to more carefully monitor ship sales to prevent violations of U.S. environmental laws,” said Mr. Self. “But this is the test case. It’s time to take a stand and uphold environmental and labor protection laws for everyone, everywhere. We urge MARAD and EPA to halt this sale as a matter of urgency.”
For more information, contact:
Mr. Colby Self
Green Ship Recycling Campaign Director
Basel Action Network
+001 206 250 5652
[1] National Guidance: Best Management Practices for Preparing Vessels Intended to Create Artificial Reefs, http://www.epa.gov/owow/oceans/habitat/artificialreefs/documents/pcb.pdf
28 October 2010. Seattle, USA. – According to the toxic watchdog organization Basel Action Network (BAN), a U.S. flagged oil tanker named Prince William Sound, one that is part owned by BP and formerly was used to haul BP oil, is about to be sold for scrapping on the notorious shipbreaking beaches in South Asia. The ship, built in 1975 and whose namesake and owner are all too familiar reminders of recent environmental disasters, is likely to contain toxic wastes such as asbestos, polychlorinated biphenyls (PCBs) and other hazardous substances, and as such poses a threat to workers and the environment should it be exported to a developing country.
The vessel is reportedly moored now in a BP shipping depot in Malaysia, and its transfer is imminent. If the U.S. government fails to quickly intervene, the ship could be run up on the beaches of India, Bangladesh or Pakistan within days, where impoverished laborers break down ships by hand, subjecting them to explosions, accidents and occupational disease from exposure to toxic substances. This “beaching” method of scrapping ships is also devastating to local environments due to pollution and mangrove forest destruction undertaken to make room for the ships.
According to officials at the United States Maritime Administration (MARAD), the sale must first be approved by them based in part by a determination by the U.S. Environmental Protection Agency (EPA) that the export will not violate the Toxic Substances Control Act (TSCA) or other environmental laws. They have been notified by the ship’s owners (it is 25% owned by BP) of their intent to sell the vessel for scrap to a cash-buyer, a middleman who allows companies like BP to both sidestep controversy and avoid direct sales to Asian shipbreaking yards and also make a large profit by avoiding responsible and more expensive ship recycling in the U.S. or another developed country.
“BP is proving once again a callous disregard for people and the environment,” said BAN’s Green Ship Recycling Campaign Director, Colby Self. “The EPA and MARAD must step in now and prevent what could be another BP-sponsored environmental disaster.”
Unlike BP, Chevron opted this year to recycle two of its tankers in Brownsville, Texas, in accordance with strict U.S. environmental and labor protection laws. Chevron’s environmentally responsible ship disposal decisions in 2010 generated U.S. green recycling jobs at a time when U.S. jobs are much needed.
Due to the year of construction, the Prince William Sound likely contains PCBs, asbestos of other hazardous materials within its construction. The EPA has noted, “Although no longer commercially produced in the United States, PCBs are most likely to be present in vessels deployed before the 1979 PCB ban." [1] The Toxic Substances Control Act (TSCA), in force since 1979, prohibits the export of PCB contaminated material for disposal purposes. However, the U.S. EPA has long struggled to enforce TSCA against shipping industry violators, particularly when vessels operate outside U.S. waters and beyond EPA jurisdiction.
MARAD is required by law to authorize the foreign scrapping and reflagging to foreign registry of all U.S. flagged vessels; but in past years, BAN’s protests have revealed that MARAD’s review neglected to consider the potential violation of laws that were enforceable by agencies outside MARAD’s jurisdiction. As a result, many U.S. vessels were reflagged and sold or scrapped abroad in violation of TSCA. Now, MARAD and EPA have established a new process of review in which MARAD seeks EPA judgment to ensure compliance with TSCA prior to any reflagging or foreign scrapping authorization.
“The new Maritime Administration should be applauded for promising to more carefully monitor ship sales to prevent violations of U.S. environmental laws,” said Mr. Self. “But this is the test case. It’s time to take a stand and uphold environmental and labor protection laws for everyone, everywhere. We urge MARAD and EPA to halt this sale as a matter of urgency.”
For more information, contact:
Mr. Colby Self
Green Ship Recycling Campaign Director
Basel Action Network
+001 206 250 5652
[1] National Guidance: Best Management Practices for Preparing Vessels Intended to Create Artificial Reefs, http://www.epa.gov/owow/oceans/habitat/artificialreefs/documents/pcb.pdf
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