THE RECYCLING OF SHIPS ACT, 2019 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 
PRELIMINARY 

SECTIONS 

1.  Short title, commencement and application. 
2.  Definitions. 

CHAPTER II 
AUTHORITIES UNDER THE ACT 

3.  Designation of National Authority. 
4.  Designation of Competent Authority. 

CHAPTER III 
REQUIREMENTS FOR SHIPS 

5.  Non-application of provisions of this Chapter. 
6.  Controls on hazardous materials. 
7.  Surveys. 
8.  Certificate on inventory of hazardous materials. 
9.  Validity of certificate. 
10.  Suspension or cancellation of certificate. 

CHAPTER IV 
SHIP RECYCLING FACILITY 

11.  Authorisation of ship recycling facility. 
12.  Ship recycling facility management plan and procedure for authorisation of ship recycling 

facility. 

13.  Suspension or cancellation of authorisation. 
14.  Emergency preparedness and response. 
15.  Workers safety, training and insurance. 

CHAPTER V 
PROCESS OF RECYCLING OF SHIPS 

16.  Ready for recycling certificate. 
17.  Ship recycling plan. 
18.  General requirements. 
19.  Obligations on part of ship owner. 
20.  Procedure for grant of permission for ship recycling. 
21.  Safe and environmentally sound management of hazardous materials. 
22.  Obligation on Ship Recycler to take measures for protection of environment. 

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CHAPTER VI 
REPORTING REQUIREMENTS 

SECTIONS 

23.  Statement of completion. 
24.  Report to National Authority. 

CHAPTER VII 
APPEALS 

25.  Appeal against decision of Competent Authority. 
26.  Appeal against decision of National Authority. 

CHAPTER VIII 
POWERS AND FUNCTIONS OF NATIONAL AUTHORITY, COMPETENT AUTHORITY AND CENTRAL 
GOVERNMENT 

27.  Power to search and seize records, etc. 
28.  Power to inspect, dismiss, exclude or detain a ship. 
29.  Power to exempt. 
30.  Act not to apply to certain ships. 

CHAPTER IX 
OFFENCES, PENALTIES AND COMPENSATION 

31.  Penalty for contravention of provisions of Act or rules or regulations. 
32.  Penalty for contravention of provisions of this Act or rules or regulations for which no specific 

punishment is provided. 

33.  Punishment for other offences. 
34.  Offences by companies. 
35.  Offences to be non-congnizable, bailable and compoundable. 
36.  Cognizance of Offences. 
37.  Amount payable by owner, master or agent. 
38.  Place of trial and jurisdiction of court. 
39.  Compensation. 

CHAPTER X 
MISCELLANEOUS 

40.  Delegation of powers. 
41.  Act not in derogation of any other law. 
42.  Power to make rules. 
43.  Power to make regulations. 
44.  Laying of rules and regulations. 
45.  Protection of action taken in good faith. 
46.  Removal of difficulties. 

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THE RECYCLING OF SHIPS ACT, 2019 

ACT NO. 49 OF 2019 

[13th December, 2019.] 

An Act to provide for the regulation of recycling of ships by setting certain standards and laying 
down the statutory mechanism for enforcement of such standards and for matters connected 
therewith or incidental thereto. 

WHEREAS, the International Maritime Organisation adopted the Hong Kong International Convention 
for the Safe and Environmentally Sound Recycling of Ships, 2009 which ensures that ships, when being 
recycled after the end of their operational lives, do not pose any unnecessary risk to the environment and 
to human health and safety; 

AND  WHEREAS,  the  said  Convention  was  developed  with  inputs  from  International  Maritime 
Organisation Member States, Non-Governmental Organisations and in co-operation with the International 
Labour  Organisation  and  the  Parties  to  the  Basel  Convention  on  the  Control  of  Transboundary 
Movements of Hazardous Wastes and their Disposal, 1989; 

AND  WHEREAS,  the  Hong  Kong  Convention lays  down  the  aspects relating  to design,  construction, 
operation and preparation of ships so as to facilitate safe and environmentally sound recycling, without 
compromising  the  safety  and  operational  efficiency  of  ships  and  the  establishment  of  an  appropriate 
enforcement mechanism for recycling of ships; 

AND  WHEREAS,  the  said  Convention  contains  the  provisions  which  are  not  covered  in  the  Ship-
breaking Code (Revised), 2013 notified by the Government of India to regulate the recycling of ships in 
India; 

AND  WHEREAS,  the  said  Convention  lays  down  the  multilateral  framework  to  be  followed 

internationally by countries which become a party to it; 

AND  WHEREAS,  India,  being  a  Member-State  of  the  International  Maritime  Organisation,  had 
participated  in  the  said  Convention  and  expressed  views  for  the  protection  of  environment  and  human 
health and safety during the process of recycling of ships; 

AND WHEREAS, it is considered expedient to accede to the aforesaid Convention now and to have an 

appropriate legislation on issues relating to the recycling of ships. 

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title, commencement and application.—(1) This Act may be called the Recycling of Ships 

Act, 2019. 

(2)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 
Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any 
reference in any such provision to the commencement of this Act shall be construed as a reference to the 
coming into force of that provision. 

(3) Unless otherwise expressly provided, the provisions of this Act shall apply to— 

(a) any existing ship which is registered in India wherever it may be; 

(b) any new ship which is required to be registered in India, wherever it may be; 

1. 27th October, 2020,- S. 3 vide notification No. S.O. 3838(E), dated 27th October, 2020, see Gazette of India, Extraordinary, 

Part II, sec. 3 (ii). 
25th  February,  2021,-  S.  6,  30  and  42  vide  notification  No.  S.O.  889  (E),  dated  25th  February,  2021,  see  Gazette  of  India, 
Extraordinary, Part II, sec. 3(ii). 

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(c) ships, other than those referred to in clauses (a) and (b), that enter a port, shipyard or off-shore 
terminal or a place in India or within the Exclusive Economic Zone or territorial waters of India or 
any  marine  areas  adjacent  thereto  over  which  India  has,  or  may  have,  exclusive  jurisdiction  with 
respect  to  control  of  pollution  under  the  provisions  of  the  Territorial  Waters,  Continental  Shelf, 
Exclusive Economic Zone and Other Maritime Zones Act, 1976, or any other law for the time being 
in force; 

(d) any warship, naval auxiliary or other ship owned or operated by an Administration and used 
on  Government  non-commercial  service,  and  which  is  destined  for  recycling  in  a  ship  recycling 
facility operating in or within the territorial jurisdiction of India; and 

(e)  ship  recycling  facilities  operating  in  India  or  within  any  area  falling  under  the  exclusive 

territorial jurisdiction of India. 

2. Definitions.—(1) In this Act, unless the context otherwise requires,–– 

(a) “Administration” means the Government of the country whose flag the ship is entitled to fly, 

or under whose authority it is operating; 

(b)  “certificate  of  authorisation  of  ship  recycling  facility”  means  the  certificate  referred  to  in  

sub-section (6) of section 12; 

(c) “certificate on inventory of hazardous materials” means the certificate referred to in section 8; 

(d) “Competent  Authority”  means  such  Authority  designated  by  the  Central  Government  under 

section 4; 

(e) “hazardous material” means any material or substance, which is liable to cause harm to human 

beings, other living creatures, plants, micro-organisms, property or the environment; 

(f)  “National  Authority”  means  such  Authority  designated  by  the  Central  Government  under 

section 3; 

(g)  “notification”  means  a  notification  published  in  the  Official  Gazette  and  the  expressions 

“notify” or “notified” shall be construed accordingly; 

(h) “prescribed” means prescribed by rules made under this Act; 

(i) “ready for recycling certificate” means the certificate referred to in section 16; 

(j) “regulations” means the regulations made by the National Authority under this Act; 

(k)  “ship”  means  a  vessel  and  floating  structure  of  any  type  whatsoever  operating  or  having 
operated in the marine environment and includes submersibles, floating craft, floating platforms, self-
elevating platforms, the floating storage units, and the like; 

(l) “ship owner” means–– 

(i) a person or an association of persons or body of individuals or a company registered as the 

owner of the ship; 

(ii)  any  organisation  or  a  person  such  as  the  Manager  or  the  Bareboat  Charterer,  who  has 

assumed the responsibility for operation of the ship from the owner of the ship; 

(iii)  a  company,  which  is  registered  as  operator  and  is  operating  a  ship  owned  by  the 

Government; or 

(iv) a person or an association of persons or company owning the ship for a limited period 

pending its sale or handing over to a ship recycling facility; 

(m) “Ship Recycler” means the owner of the ship recycling facility or any other organisation or 
person  who  has assumed  the  responsibility  for  operation  of  the  ship  recycling  facility  and  who has 
agreed to take over all duties and responsibilities imposed by or under this Act; 

(n) “ship recycling” means the activity of dismantling of a ship at a ship recycling facility in order 
to recover components and materials for reprocessing and reuse, while taking care of hazardous and 

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other  materials  and  includes  associated  operations  such  as  storage,  treatment  of  components  and 
materials on site, but not their further processing or disposal in separate facilities; 

(o)  “ship  recycling  facility”  means  a  defined  area  that  is  a  site,  yard  or  facility  used  for  the 

recycling of ships and meets such requirements as may be specified by the regulations; 

(p) “ship recycling plan” means a plan specific to a ship developed by the ship recycling facility 

to recycle such a ship in safe and environmentally sound manner; 

(q) “statement of acceptance” means a statement of acceptance referred to in sub-section (4) of 

section 20; 

(r) “statement of completion” means a statement of completion referred to in section 23; 

(s)  “Surveyor”  means  a  Surveyor  as  defined  under  clause  (48)  of  section  3  of  the  Merchant 
Shipping  Act,  1958  or  any  other  person  or  body  of  persons  as  may  be  notified  by  the  Central 
Government; 

(t)  “worker”  means  a  person  employed,  directly  or  by  or  through  any  agency  (including  a 
contractor) with or without the knowledge of the principal employer, whether for remuneration or not, 
in any ship recycling, or in cleaning any part of the machinery or premises used for ship recycling, or 
in any other kind of work incidental to, or connected with, the ship recycling, or the subject of the 
ship recycling but does not include any member of the armed forces of the Union. 

(2) The words and expressions used and not defined in this Act but defined in the–– 

(i) Explosives Act, 1884 (4 of 1884); 

(ii) Inland Vessels Act, 1917 (1 of 1917; 

(iii) Petroleum Act, 1934 (30 of 1934); 

(iv) Factories Act, 1948 (63 of 1948); 

(v) Merchant Shipping Act, 1958 (44 of 1958); 

(vi) Atomic Energy Act, 1962 (33 of 1962); 

(vii) Wildlife (Protection) Act, 1972 (53 of 1972); 

(viii) Water (Prevention and Control of Pollution) Act, 1974 (6 of 1974); 

(ix) Territorial Waters, Continental Shelf, Exclusive  Economic Zone and Other Maritime Zones 

Act, 1976 (80 of 1976); 

(x) Forest (Conservation) Act, 1980 (69 of 1980); 

(xi) Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981); 

(xii) Environment (Protection) Act, 1986 (29 of 1986),  

shall have the same meanings respectively assigned to them in those Acts. 

CHAPTER II 

AUTHORITIES UNDER THE ACT 

3. Designation of National Authority.––The Central Government shall, by notification, designate an 
officer not below the rank of Joint Secretary to the Government of India as the National Authority, which 
shall administer, supervise and monitor all activities relating to ship recycling under this Act. 

4. Designation of Competent Authority.––The Central Government shall, by notification, designate 
an  Authority  to  be  called  the  Competent  Authority,  for  performance  of  such  duties  within  the 
geographical area or areas of expertise as may be prescribed. 

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CHAPTER III 

REQUIREMENTS FOR SHIPS 

5. Non-application of provisions of this Chapter.–– Nothing contained in this Chapter shall apply 

to–– 

(a) any warship, naval auxiliary, or other ships owned or operated by the Government and used 

for Government non-commercial purpose; 

(b) ships of less than five hundred gross tonnage: 

Provided that the Central Government may notify appropriate measures, not impairing operations 
or  operational  capabilities  of  such  ships  to  ensure,  as  far  as  practicable,  that  such  ships  act  in  a 
manner consistent with the provisions of this Act. 

6.  Controls  on  hazardous  materials.––(1)  No  ship  shall  instal  or  use  such  prohibited  hazardous 

materials as may be notified by the Central Government: 

Provided  that  the  Central  Government  may,  by  notification  and  for  the  reasons  specified  therein, 

exempt certain class or category of ships from the provisions of sub-section (1). 

(2) Every ship shall comply with such restrictions and conditions, as may be prescribed. 

7. Surveys.––(1) The National Authority or such person or organisation, as the Central Government 

may by notification authorise, shall carry out following surveys of the ships–– 

(a) an initial survey before the issue of certificate on inventory of hazardous materials, so as to 

verify such requirements as may be prescribed; 

(b) a renewal survey at intervals not exceeding five years as may be prescribed; 

(c) an additional survey either general or partial, at the request of the ship owner after a change, 
replacement  or  significant  repair  of  the  structure,  equipment,  systems,  fittings,  arrangements  or 
material; 

(d) a final survey prior to the ship being taken out of service and before the recycling of the ship 

so as to verify such requirements as may be prescribed; and 

(e) such other surveys as may be prescribed. 

(2) The survey shall be conducted and a certificate to this effect shall be issued in accordance with the 

provisions of this Act and the rules or regulations made thereunder. 

8. Certificate on inventory of hazardous materials.––(1) The owner of every new ship shall make 
an  application  to  the  National  Authority  for  a  certificate  on  inventory  of  hazardous  materials  for  the 
purposes of this Act and such certificate shall be specific to each ship: 

Provided that the existing ships on the date of commencement of this Act and for which the certificate 
on inventory of hazardous materials had not been issued, the owner of such ship shall make an application 
to the National Authority within a period of five years from the date of commencement of this Act: 

Provided further that a certificate on inventory of hazardous materials issued by any Administration 

shall be valid for the purposes of this Act. 

(2) The terms and conditions, the format and the manner for granting the certificate on inventory of 

hazardous materials shall be such as may be prescribed. 

(3)  The  certificate  on  inventory  of  hazardous  materials  shall  be  properly  maintained  and  updated 
throughout the operational life of the ship, reflecting the new installations containing hazardous materials 
and relevant changes in the ship structure and equipment. 

Explanation.––For  the  purposes  of  this  sub-section,  the  expression  “new  installation”  includes 
systems, equipment, insulation or other material installed on a ship after the date of coming into force of 
this Act. 

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 (4) The certificate on inventory of hazardous materials shall be endorsed by the National Authority 
after successful completion of an additional survey conducted in accordance with clause (c) of sub-section 
(1) of section 7. 

Explanation.––For the purposes of this section, the expressions–– 

(i) “existing ship” means a ship which is not a new ship; 

(ii) “new ship” means a ship,–– 

(a) for which the building contract is placed on or after the date of coming into force of this 

Act; or 

(b) other than the ship referred to in sub-clause (a), the keel of which is laid or which is at a 

similar stage of construction after six months from the date of coming into force of this Act; or 

(c) which is to be delivered after thirty months from the date of coming into force of this Act,  

and which is intended to be registered in India. 

9. Validity of certificate.–– The certificate referred to in sub-section (1) of section 8 shall be issued 

or renewed for such period, not exceeding five years, as may be prescribed: 

Provided that where validity of certificate on inventory of hazardous material expires at a time when a 
ship is not in the port in which it is to be surveyed, the Administration may extend the period of validity 
of such certificate and this extension shall be granted only–– 

(a)  for  the  purpose  of  allowing  the  ship  to  complete its  voyage  to  the  port  in  which  it  is to  be 

surveyed; or  

(b) in cases where it appears proper and reasonable to the Administration to do so: 

Provided further that no certificate shall be extended for a period longer than three months, and a ship 
to  which  an  extension  is  granted  shall  not,  on  its  arrival  on  the  port  in  which  it  is  to  be  surveyed,  be 
entitled by virtue of such extension to leave that port without having the certificate renewed. 

10. Suspension or cancellation of certificate.––The certificate on inventory of hazardous materials 
shall  be  liable  to  be  suspended  or  cancelled  by  the  National  Authority  in  any  of  the  following  cases, 
namely:–– 

(i) if the ship, prima facie, does not comply with the particulars of the certificate; 

(ii) where the inventory of hazardous materials is not properly maintained and updated with such 

changes in the ship structure and equipment as may be prescribed; 

(iii) in case of transfer of the ship to the flag of another State; 

(iv) if the survey specified by the Administration is not completed within the period specified in 

section 7; or 

(v) if endorsement of certificate does not disclose,–– 

(a) conduct of an additional survey as required under section 7; or 

(b) extension of the validity of the certificate required under section 9: 

Provided  that  no  certificate  under  this  section  shall  be  suspended  or  cancelled  unless  the 

owner of the ship has been given an opportunity of being heard. 

CHAPTER IV 

SHIP RECYCLING FACILITY 

11. Authorisation of ship recycling facility.–– No Ship Recycler shall recycle a ship, unless the ship 

recycling facility is authorised as per the procedure laid down in section 12. 

12. Ship recycling facility management plan and procedure for authorisation of ship recycling 
facility.––(1)  A  Ship  Recycler  seeking  a  certificate  of  authorisation  for  ship  recycling  facility from  the 

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Competent  Authority  or  an  organisation  recognised  by  it,  shall  prepare  a  ship  recycling  facility 
management plan as specified by the regulations and submit an application to the Competent Authority. 

(2)  Every  application  for  authorisation  under  sub-section  (1),  shall  be  made  to  the  Competent 

Authority in such form and manner and accompanied by such fee as may be prescribed. 

(3)  Every  ship  recycling  facility  engaged  in  recycling  of  ships,  immediately  before  the 
commencement  of  this  Act,  shall  apply  for  authorisation  within  sixty  days  from  the  date  of  such 
commencement. 

(4) Subject to the provisions of sub-section (3), every ship recycling facility engaged in recycling of 
ships, immediately before the commencement of this Act shall cease to conduct any such recycling on the 
expiry of six months from the date of commencement of this Act unless such ship recycling facility has 
applied for authorisation and is so authorised or till such application is disposed of, whichever is earlier. 

(5)  No  ship  recycling  facility  shall  be  authorised  under  this  Act  unless  the  Competent  Authority  is 
satisfied that such facility maintains such equipment and standards as may be specified by the regulations. 

(6)  The  Competent  Authority  shall,  after  holding  an  enquiry  and  after  satisfying  itself  that  the 
applicant  has  complied  with  all  the  requirements  of  this  Act  and  the  rules  and  the  regulations  made 
thereunder, grant a certificate of authorisation in such format as may be specified by the regulations. 

(7) If, after an enquiry and after giving to the applicant an opportunity of being heard, the Competent 
Authority is satisfied that the applicant has not complied with the requirements of this Act, or the rules or 
regulations  made  thereunder,  it  shall,  for  reasons  to  be  recorded  in  writing,  reject  the  application  for 
authorisation. 

(8)  Every  certificate  of  authorisation  for  ship  recycling  facility  shall  be  valid  for  such  period  not 

exceeding five years as may be specified by the regulations. 

(9) Every certificate of authorisation shall be renewed in such manner and after such period and on 

payment of such fee as may be prescribed. 

(10)  The  Competent  Authority  shall  undertake  an  annual  audit  of  every  ship  recycling  facility  to 
satisfy  compliance  with  the  requirements  of  this  Act,  the  rules  and  regulations  made  thereunder  and 
forward such audit report to the National Authority. 

13. Suspension or cancellation of authorisation.––(1) The Competent Authority may, whenever it 
considers necessary, for the reasons to be recorded in writing, conduct an enquiry or inspection of a ship 
recycling facility and issue a notice to the Ship Recycler to show cause as to why the authorisation of his 
ship recycling facility should not be suspended or cancelled for the reasons mentioned in the notice. 

(2)  The  manner  of  enquiry  or  inspection  by  the  Competent  Authority  shall  be  such  as  may  be 

specified by the regulations. 

(3) If the Competent Authority is satisfied that there has been a breach of the provisions of this Act or 
the rules or the regulations made thereunder, it may, without prejudice to any criminal action that it may 
take against such Ship Recycler, suspend or cancel the authorisation of his ship recycling facility: 

Provided that no such authorisation shall be suspended or cancelled without giving an opportunity of 

being heard in the matter to the Ship Recycler. 

(4) Notwithstanding anything contained in sub-sections (1) and (2), if the Competent Authority is of 
the opinion that it is necessary or expedient so to do in public interest, it may, for reasons to be recorded 
in  writing,  suspend  or  cancel  the authorisation  of any  ship  recycling facility  without issuing  any  notice 
referred to in sub-section (1). 

14.  Emergency  preparedness  and  response.––Every  Ship  Recycler  shall  maintain  adequate 
measures  for  emergency  preparedness  and  response  in  accordance  with  the  provisions  of  the  Factories 
Act, 1948 (63 of 1948) in his ship recycling facility. 

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15.  Workers  safety,  training  and  insurance.––(1)  Every  Ship  Recycler  shall  provide  adequate 
measures  for  safety,  health,  training  and  welfare  of  workers  in  his  ship  recycling  facility  and  for  this 
purpose, the provisions of the Factories Act, 1948 (63 of 1948) shall apply. 

(2)  Every  Ship  Recycler  shall  provide  an  individual  or  comprehensive  insurance  coverage  for  the 

regular and temporary workers in such manner as may be prescribed. 

CHAPTER V 

PROCESS OF RECYCLING OF SHIPS 

16. Ready for recycling certificate.––(1) The owner of a ship who intends to recycle his ship shall 
make an application to the National Authority for a ready for recycling certificate in such form, manner, 
and accompanied by such fee as may be specified by the regulations or the Administration concerned as 
per the procedure determined by such Administration. 

(2)  A  ready  for  recycling  certificate  referred  to  in  sub-section  (1)  may  be  issued  after  successful 

completion of a survey and shall be valid for a period of three months from the date of its issue: 

Provided that the period of validity may be extended by the National Authority for such reasons as 
may  be  specified  by  the  regulations  or  the  Administration  concerned  as  per  the  reasons  determined  by 
such Administration. 

(3)  A  ready  for  recycling  certificate  shall  cease  to  be  valid,  if  the  condition  of  the  ship  does  not 

correspond with the particulars of the certificate. 

17. Ship recycling plan.––(1) No Ship Recycler shall recycle any ship without a ship recycling plan 
prepared in accordance with the guidelines issued under sub-section (2) and approved by the Competent 
Authority. 

(2) The National Authority may specify the guidelines for the preparation of a ship recycling plan for 

different categories of ships: 

Provided that the  Competent  Authority  may,  after  hearing the  Ship  Recycler,  refuse  to  approve  the 
ship recycling plan if it has reasons to believe that the plan does not comply with the guidelines specified 
by the National Authority. 

(3)  Where  the  Competent  Authority  fails  to  convey  its  decision  regarding  approval  of  the  ship 

recycling plan within fifteen days of its submission, the plan shall be deemed to have been approved. 

18. General requirements.––(1) No ship shall be recycled without the written permission or, as the 
case  may  be,  the  deemed  permission  of  the  Competent  Authority  obtained  in  such  manner  as  may  be 
specified by the regulations. 

(2)  Any  ship  registered  in  India  and  intended  to  be  recycled  outside  the  territory  of  India  shall  be 
recycled  only  at  a  ship  recycling  facility  duly  authorised  by  such  authority  as  may  be  specified  by  the 
regulations. 

19. Obligations on part of ship owner.––(1) The owner of a ship which is intended to be recycled 

within the territory of India shall— 

(i) give an advance intimation to the Maritime Rescue Co-ordination Centre and the Competent 

Authority about the date of arrival, in such manner as may be prescribed; 

(ii) clear all port dues, if any, upon arriving at the port and submit the documents as specified in 

the regulations; and 

(iii) keep the ship clear of cargo residues and shall minimise any remaining fuel oil and wastes on 

board. 

(2) The  owner of a  tanker which is  intended to  be  recycled  within the territory  of  India  shall  fulfil 

such conditions for safe-for-entry or safe-for-hotwork or both, as specified by the regulations. 

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20.  Procedure  for  grant  of  permission  for  ship  recycling.––(1)  The  Competent  Authority  shall 
grant  permission  for  recycling  only  after  physical  inspection  of  the  ship  and  for  this  purpose  it  may 
requisition the services of representatives of such agencies as may be prescribed. 

(2) Where the Competent Authority fails to convey its decision regarding grant of permission within 

fifteen days of receipt of application, the permission shall be deemed to have been granted. 

(3) The Competent Authority may deny permission for recycling for reasons to be recorded in writing 

after affording an opportunity of being heard to the ship owner. 

(4) The Ship Recycler, on receipt of a copy of permission to recycle the ship, shall issue a statement 
of acceptance to the ship owner under intimation to the Competent Authority in such form and manner as 
may be specified by the regulations and thereafter the ship owner may get the ship de-registered. 

21. Safe and environmentally sound management of hazardous materials.––Every Ship Recycler 

shall,— 

(a) ensure safe and environmentally sound removal and management of hazardous materials from 

a ship; and 

(b) comply with such requirements related to basic infrastructure facilities including those related 
to environmentally safe disposal or management of wastes and hazardous materials, in such manner 
as may be specified by the regulations. 

22.  Obligation  on  Ship  Recycler  to  take  measures  for  protection  of  environment.––(1)  Every 

Ship Recycler shall,— 

(i)  ensure  that  there  is  no  damage  caused  to  the  environment  in  any  form  due  to  the  recycling 

activities at the ship recycling facility; and 

(ii) take necessary measures for protection of the environment. 

(2)  In  case  of  oil  spill  in  the  facility,  the  Ship  Recycler  shall  be  served  a  notice  by  the  Competent 

Authority to take remedial action in such manner as may be specified by the regulations. 

(3) For contravention of the provisions of this section, the Ship Recycler shall be liable to pay such 

environmental damages and cleanup operation compensation in such manner as may be prescribed. 

CHAPTER VI 

REPORTING REQUIREMENTS 

23.  Statement  of  completion.—When  a  ship  is  recycled  in  accordance  with  the  provisions  of  this 
Act, a statement of completion containing such particulars as may be specified by the regulations shall be 
submitted by the Ship Recycler to the Competent Authority. 

24.  Report  to  National  Authority.—The  Competent  Authority  shall  give  report  to  the  National 
Authority, from time to time, which shall include information comprising the list of approved facilities, 
list of ships which have not complied with the provisions of this Act and action taken on such ships and 
list of ships recycled, as may be required by the National Authority. 

CHAPTER VII 

APPEALS 

25.  Appeal  against  decision  of  Competent  Authority.—(1)  Any  person  who  is  aggrieved  by  any 
decision made by the Competent Authority or the authorised surveyor or any authorised organisation or 
authorised person may file an appeal to the National Authority within a period of thirty days from the date 
of receipt of such decision in such manner as may be prescribed: 

Provided  that  in  respect  of  matters  under  any  other  law  for  the  time  being  in  force  for  which  an 
appellate provision exists, in such law, then the appellant shall file the appeal to the authority specified in 
such law. 

(2) The appeal filed under sub-section (1) shall be disposed of in such manner as may be prescribed. 

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26.  Appeal  against  decision  of  National  Authority.—(1)  Any  person  who  is  aggrieved  by  any 
decision made by the National Authority may file an appeal to the Central Government within a period of 
thirty days from the date of receipt of such decision in such manner as may be prescribed. 

(2) The appeal filed under sub-section (1) shall be disposed of in such manner as may be prescribed. 

CHAPTER VIII 

POWERS AND FUNCTIONS OF NATIONAL AUTHORITY, COMPETENT AUTHORITY AND  
CENTRAL GOVERNMENT 

27.  Power  to  search  and  seize  records,  etc.—(1)  If  the  National  Authority  or  the  Competent 
Authority has reason to believe that an offence under this Act has been or is being committed at any ship 
recycling facility, such Authority or any officer authorised therefor in this behalf may, subject to the rules 
and regulations made under this Act, enter and search at all reasonable times with such assistance, if any, 
as  such  Authority  or  officer  considers  necessary,  such  ship  recycling  facility  and  examine  any  record, 
register,  document,  equipment  or  any  other  material  object  found  therein  and  seize  the  same  if  such 
Authority or officer has reason to believe that it may furnish evidence of the commission of an offence 
punishable under this Act. 

(2)  The  provisions  of  the  Code  of  Criminal  Procedure,  1973  (2  of  1974)  relating  to  searches  and 

seizures shall, so far as may be, apply to every search or seizure made under this Act. 

 28.  Power  to  inspect,  dismiss,  exclude  or  detain  a  ship.—(1)  The  National  Authority  or 
Administration or any Survey authorised by it, may inspect any ship, at a reasonable time, while at any 
port or within Indian waters: 

Provided  that  any  such  inspection  shall  be  only  for  the  purpose  of  verifying  that  there  is  on  board 

either a certificate on inventory of hazardous materials or a ready for recycling certificate. 

(2) The  National  Authority  may  dismiss,  exclude  or detain  the  ship  from  its  ports  or  within  Indian 

waters in case of,— 

(a)  failure  to  carry  a  valid  certificate  on  inventory  of  hazardous  materials  or  a  valid  ready  for 

recycling certificate or both, as applicable; or 

(b)  non-compliance  with  the  control  measures  for  hazardous  materials  notified  by  the  Central 

Government.  

(3)  A  ship  detained  under  sub-section  (2)  shall  remain  under  detention  till  such  time  until  the  
non-compliance is rectified or till such time until permission is granted by the National Authority for such 
detained ship to proceed to an appropriate repair yard or port, without danger to the ship, environment or 
persons on board. 

(4) Any Commissioned Officer of the Indian Navy or Indian Coast Guard or any Port Officer, Pilot, 
Harbour Master, Conservator of Port or Customs Collector may detain the ship, the detention of which is 
authorised or ordered to be detained under this Act. 

29. Power to exempt.—(1) Notwithstanding anything contained in this Act, the Central Government 
may,  by  order  in  writing  and  upon  such  conditions,  if  any,  as  it  may  think  fit  to  impose,  exempt  any 
vessel  or  any  class  thereof,  ship  recycling  facility  or  Ship  Recycler  from  any  specified  requirement 
contained  in  or  prescribed  in  pursuance  of  this  Act  or  dispense  with  the  observance  of  any  such 
requirement, if it is satisfied that the requirement has been substantially complied with or that compliance 
with the requirement is or ought to be dispensed within the circumstances of the case. 

(2) Where an exemption granted under sub-section (1) is subject to any conditions, a breach of any of 
those conditions shall, without prejudice to any other remedy, be deemed to be an offence under this Act. 

30. Act not to apply to certain ships.—The provisions of this Act shall not apply to such category of 

Indian ships, as the Central Government may, from time to time, by notification specify: 

Provided that such ships shall be required to act in such manner as may be prescribed. 

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CHAPTER IX 

OFFENCES, PENALTIES AND COMPENSATION 

31. Penalty for contravention of provisions of Act or rules or regulations.—(1) Whoever instals 
or uses any prohibited hazardous material in a ship in contravention of the provisions of this Act or rules 
or regulations made thereunder shall be punishable with imprisonment for a term which may extend to 
three months or with fine which may extend to five lakh rupees or with both. 

(2)  Whoever  contravenes  the  provisions  of  section  12  shall  be  punishable  with  imprisonment  for  a 

term which may extend to one year or with fine which may extend to ten lakh rupees or with both. 

(3)  Whoever  contravenes  the  provisions  of  sub-section  (1)  of  section  17  shall  be  punishable  with 
imprisonment for a term which may extend to one year or with fine which may extend to ten lakh rupees 
or with both. 

(4)  Whoever  contravenes  the  provisions  of  sub-section  (1)  of  section  18,  shall  be  punishable  with 
imprisonment for a term which may extend to one year or with fine which may extend to ten lakh rupees 
or with both. 

(5)  Whoever  fails  to  ensure  safe  and  environmentally  sound  removal  and  management  of  any 
hazardous  material  from  a  ship  in  accordance  with  the  regulations  shall  be  punishable  with  an 
imprisonment  for  a  term  which  may  extend  to  six  months  or  with  fine  which  may  extend  to  five  lakh 
rupees or with both. 

(6) Whoever fails to respond to the notice issued for oil spill under sub-section (2) of section 22 shall 

be punishable— 

(i) with a fine which may extend to five lakh rupees in case of non response within twelve hours 

of issuance of first notice; 

(ii) with a fine which may extend to ten lakh rupees in case of non response within twenty-four 

hours of issue of second notice; and 

(iii) with an imprisonment which may extend to three months and with a fine which may extend 

to ten lakh rupees in case of non response beyond twenty-four hours of issue of third notice. 

32.  Penalty  for  contravention  of  provisions  of  this  Act  or  rules  or  regulations  for  which  no 
specific punishment is provided.—Whoever contravenes any of the provisions of this Act or any rules 
or regulations made thereunder, for which no specific punishment has been provided in this Act, shall be 
punishable  with  imprisonment  for  a  term  which  may  extend  to  three  months  or  with  fine,  which  may 
extend to two lakh rupees or with both and, in the case of a continuing contravention, with an additional 
fine which may extend to five thousand rupees for every day during which such contravention continues 
after the conviction for the first such contravention. 

33. Punishment for other offences.—(1) If any ship, after detention or after service of any notice or 
order  for  such  detention,  proceeds  to  sea  before  it  is  released  by  the  National  Authority,  the  owner  or 
master of the ship shall be guilty of an offence under this Act. 

(2)  Whoever  restrains  or  detains  or  forcibly  takes  to  sea,  any  person  authorised  under  this  Act  to 
detain or survey the ship, on the execution of his duty, the owner, master or agent of such ship shall each 
be  liable  to  pay  all  expenses  of,  and  incidental  to,  such  person  being  so  taken  to  sea  and  shall  also  be 
guilty of an offence under this Act. 

34.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company, every person who, at the time the offence was committed was in charge of, and was responsible 
to the company for the conduct of the business of the company, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment, provided in this Act, if he proves that the offence was committed without his knowledge or 
that he had exercised all due diligence to prevent the commission of such offence. 

12 

 
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance  of,  or  is attributable  to  any  neglect  on the  part  of  any  director,  manager,  secretary  or  other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a)  “company”  means  anybody  corporate  and  includes  a  co-operative  society,  firm  or  other 

association of individuals; and 

(b)  “director”  means  a  whole  time  director  in  the  company  and  in  relation  to  a  firm  means  a 

partner in the firm. 

35.  Offences  to  be  noncognizable,  bailable  and  compoundable.—Notwithstanding  anything 
contained in the Code of Criminal Procedure, 1973 (2 of 1974), every offence under this Act shall be non-
cognizable, bailable and compoundable. 

36. Cognizance of offences.—No court shall take cognizance of an offence under this Act except on 

a complaint made by— 

(a) the Central Government; 

(b) the National Authority or an officer authorised in this behalf; or 

(c) the Competent Authority or an officer authorised in this behalf. 

37. Amount payable by owner, master or agent.—When any owner or master or agent is convicted 
of  an  offence  under  sub-section  (2)  of  section  33,  the  amount  payable  on  account  of  expenses  by  such 
owner or master or agent shall be determined and recovered in such manner as may be prescribed. 

38. Place of trial and jurisdiction of court.—Any person committing any offence under this Act or 
any rules made thereunder, may be tried for such offence in any place in which he may be found, or in 
any  Court  which the  Central  Government  may,  by  notification,  direct in  this  behalf,  or in any  Court in 
which he might be tried under any other law for the time being in force. 

39. Compensation.—(1) Where a ship is unduly detained or delayed as a result of an inspection or 
investigation without any reasonable cause, then, such ship shall be entitled to compensation for any loss 
or damage suffered thereby. 

(2) The rate of compensation referred to in sub-section (1), the method of calculation and the manner 

of payment of such compensation shall be such as may be prescribed. 

(3) For the purpose of adjudging compensation under this section, the Central Government may, by 
notification, nominate an officer of the Central Government, not below the rank of Joint Secretary to the 
Government of India, to be an adjudicating officer for holding an inquiry in the prescribed manner, after 
giving any person concerned an opportunity of being heard. 

CHAPTER X 

MISCELLANEOUS 

40. Delegation of powers.—(1) The Central Government may, by general or special order, subject to 
such  conditions  and  restrictions  as  may  be  provided  in  such  order,  direct  that  any  power,  authority  or 
jurisdiction  exercisable  by  it  under  or  in  relation  to  a  provision  of  this  Act  (except  the  power  to  make 
rules),  be  exercisable  also  by  the  National  Authority  or  Competent  Authority  or  such  other  officer  not 
below the rank of Joint Secretary to the Government of India. 

(2)  The  National  Authority  or  the  Competent  Authority  may,  with  the  previous  approval  of  the 
Central  Government,  by  general  or  special  order,  subject  to  such  conditions  and  restrictions  as  may  be 
provided  in  such  order,  direct  that  any  power,  authority  or  jurisdiction  exercisable  by  it  under  or  in 
relation  to  a  provision  of  this  Act  (except  the  power  to  make  regulations),  be  exercisable  also  by  such 
officer or other authority as may be specified in such order. 

13 

 
41. Act not in derogation of any other law.— The provisions of this Act shall be in addition to and 

not in derogation of any other law for the time being in force. 

42. Power  to  make rules.—(1) The  Central  Government  may,  by  notification,  make  rules  to  carry 

out the provisions of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a)  the  duties  of  Competent  Authority  within  the  geographical  area  or  areas  of  expertise  under 

section 4; 

(b) the restrictions and conditions imposed on installation or use of any hazardous material, to be 

complied by every ship under sub-section (2) of section 6; 

(c)  the  requirements  to  be  verified  for  the  survey  of  ships  under  clauses  (a),  (b)  and  (d)  of  

sub-section (1) of section 7; 

(d) the other conditions to be required for the survey of ships under clause (e) of sub-section (1) 

of section 7; 

(e)  the  terms  and  conditions,  validity,  the  format  and  manner  for  granting  the  certificate  on 

inventory of hazardous materials under sub-section (2) of section 8 and section 9;  

(f) the changes in ship structures and equipment under clause (ii) of section 10; 

(g)  the form,  fees  and  the manner  of  making  the  application  for authorisation  of  ship  recycling 

facility under sub-section (2) of section 12; 

(h) the manner, period and fees for renewal of certificate of authorisation under sub-section (9) of 

section 12; 

(i) the manner of providing individual or comprehensive insurance coverage for the regular and 

temporary workers under sub-section (2) of section 15; 

(j) the manner of advance intimation about the arrival of ship under sub-section (1) of section 19; 

(k)  the  requisition  of  the  services  of  representatives  of  agencies  for  grant  of  permission  under  

sub-section (1) of section 20; 

(l) the liability of the Ship Recycler for environmental damages under sub-section (3) of section 

22; 

(m) the manner of filing an appeal against the orders of the Competent Authority and the manner 

of disposal of such appeal under section 25; 

(n)  the  manner  of  filing  an  appeal  against  the  orders  of  National  Authority  and  the  manner  of 

disposal of such appeal under section 26; 

(o) the manner in which the ships are required to act for non-application of the provisions of the 

Act under the proviso to section 30; 

(p) the manner of determination and recovery of amount payable under section 37; 

(q) the rate of compensation, method of calculation and the manner of compensation entitled by a 

ship under sub-section (2) of section 39; 

(r)  the  manner  of  holding  an  inquiry  for  the  purpose  of  payment  of  compensation  under  

sub-section (3) of section 39; and 

(s) any other matter which is to be, or may be, prescribed or in respect of which provision is to be 

made by rules. 

43.  Power  to  make  regulations.—(1)  The  National  Authority  with  the  previous  approval  of  the 
Central Government, by notification in the Official Gazette, may make regulations not inconsistent with 
the provisions of this Act and the rules made thereunder. 

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(2) In particular and without prejudice to the generality of the foregoing power, such regulations may 

provide for all or any of the following matters, namely:— 

(a)  the  requirements  relating  to  ship  recycling  facility  under  clause  (o)  of  sub-section  (1)  of 

section 2; 

(b) the manner of preparation of a ship recycling facility management plan under sub-section (1) 

of section 12; 

(c)  the  equipment  and  other  standards  to  be  maintained  by  the  Ship  Recycler  under  

sub-section (5) of section 12; 

(d) the form in which a certificate of authorisation shall be issued under sub-section (6) of section 

12; 

(e)  the  period  of  validity  of  certificate  of  authorisation  for  ship  recycling  facility  under  

sub-section (8) of section 12; 

(f)  the  manner  of  enquiry  or  inspection  by  the  Competent  Authority  under  sub-section  (2)  of 

section 13; 

(g)  the  manner  of  making  an  application  to  the  National  Authority  for  a  ready  for  recycling 

certificate under sub-section (1) of section 16; 

(h) the manner and format for issuing of the ready for recycling certificate under sub-section (2) 

of section 16; 

(i)  the  manner  of  obtaining  the  written  permission  of  the  Competent  Authority  under  

sub-section (1) of section 18; 

(j) the authority to authorise the ship recycling facility under sub-section (2) of section 18; 

(k) submission of documents by ship owner under clause (ii) of sub-section (1) of section 19; 

(l)  the  conditions  for  safe-for-entry  or  safe-for-hotwork  or  both  under  sub-section  (2)  of  

section 19; 

(m)  the  form  and  manner  of  issue  of  statement  of  acceptance  by  the  Ship  Recycler  under  

sub-section (4) of section 20; 

(n)  the  requirements  relating  to  removal  and  management  of  hazardous  materials  and  basic 

infrastructure to be complied with by the Ship Recycler under clause (b) of section 21; 

(o) the manner of serving of notice by the Competent Authority to a Ship Recycler in case of oil 

spill under sub-section (2) of section 22; 

(p) the manner of submission of statement of completion by the Ship Recycler under section 23; 

and 

(q) any other matter which is required to be, or may be, specified by regulations. 

44.  Laying  of  rules  and  regulations.—Every  rule  made  by  the  Central  Government  and  every 
regulation made by the National Authority under this Act shall be laid, as soon as may be after it is made, 
before  each  House  of  Parliament  while  it  is  in  session  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, 
the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case 
may  be;  so,  however,  any  such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of 
anything previously done under that rule or regulation. 

45. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie against the Central Government or the State Government or the National Authority or the Competent 
Authority or any officer authorised by the Central Government or the State Government or the National 

15 

 
Authority or the Competent Authority for anything done in good faith or intended to be done in pursuance 
of the provisions of this Act. 

46. Removal of difficulties.—(1) If any difficulty arises in giving effect to the provisions of this Act, 
the  Central  Government    may,  by  order  published  in  the  Official  Gazette,  make  such  provisions,  not 
inconsistent  with  the  provisions  of  this  Act,  as  may  appear  to  it  to  be  necessary  for  removing  the 
difficulty: 

Provided that no such order shall be made under this section after the expiry of a period of three years 

from the date of commencement of this Act. 

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 

House of Parliament. 

16 

 
