India has entered into a USD 76 million loan pact with Japan International Cooperation Agency (JICA) for a project at Alang-Sosiya ship recycling yards.
"The Government of India signed a loan deal worth USD 76 million with the Japan International Cooperation Agency (JICA) today, for a project to upgrade the environment management plan at Alang-Sosiya ship recycling yards," the Ministry of Shipping said in a statement.
It said the total cost of the project will be USD 111 million, out of which USD 76 million will be provided as soft loan from JICA.
"Out of the remaining amount, USD 25 million as taxes and fees will be borne by the Government of Gujarat and the balance USD 10 million will be shared by the Ministry of Shipping and Government of Gujarat," the statement said.
The project will be executed by the Gujarat Maritime Board (GMB) and is likely to be completed by 2022.
This project will help the Alang-Sosia ship-recycling yards to comply with international safety and environmental regulations.
The statement said this will attract more business at the recycling facilities at Alang, thereby further consolidating India's share in the global ship-recycling industry.
"This project will also help in safeguarding the marine and coastal environment. The use of advanced decontamination technology will rule out the possibility of fire accidents in oil and chemical tankers, thereby ensuring workers safety," it added.
The government said the project is expected to result in increase in direct employment from 50,000 to 92,000 people and in-direct employment from 1.5 lakh to 3 lakh people.