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Official Legislative Archive

The Recycling of Ships Bill, 2019

SECTION Section 1

Untitled Section

THE RECYCLING OF SHIPS BILL, 2019
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ARRANGEMENT OF CLAUSES
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SECTION Section 10

Untitled Section

5.Non-application of provisions of this Chapter.
SECTION Section 100

Untitled Section

34.(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.
(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 any body 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.Notwithstanding anything contained in the Code of Criminal Procedure, 1973,
every offence under this Act shall be non-cognizable, bailable and compoundable.
SECTION Section 101

Untitled Section

36.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.
SECTION Section 102

Untitled Section

37.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.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 time being in force.
SECTION Section 103

Untitled Section

39.(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.
Offences by
companies.
Offences to be
non-
cognizable,
bailable and
compoundable.
2 of 1974.
Cognizance of
offences.
Amount
payable by
owner, master
or agent.
Place of trial
and
jurisdiction of
court.
Compensation.
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15
20
25
30
35
40
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SECTION Section 104

Untitled Section

CHAPTER X
MISCELLANEOUS
SECTION Section 105

Untitled Section

40.(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.
SECTION Section 106

Untitled Section

41.The provisions of this Act shall be in addition to and not in derogation of any
other law for the time being in force.
SECTION Section 107

Untitled Section

42.(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 Section 108

Untitled Section

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)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;
Delegation of
powers.
Act not in
derogation of
any other law.
Power to
make rules.
5
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15
20
25
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35
40
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14
(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 Section 109

Untitled Section

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.
SECTION Section 11

Untitled Section

6.Controls on hazardous materials.
SECTION Section 110

Untitled Section

43.(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.
(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 Section 111

Untitled Section

section 18;
( k) submission of documents by ship owner under clause ( iii ) 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;
Power to
make
regulations.
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10
15
20
25
30
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(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 Section 112

Untitled Section

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.
SECTION Section 113

Untitled Section

44.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; however, any such
modification or annulment shall be without prejudice to the validity of anything previously
done under that rule or regulation.
SECTION Section 114

Untitled Section

45.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
Authority or the Competent Authority for anything done in good faith or intended to be
done in pursuance of the provisions of this Act.
SECTION Section 115

Untitled Section

46.(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.
Laying of
rules and
regulations.
Protection of
action taken
in good faith.
Removal of
difficulties.
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STATEMENT OF OBJECTS AND REASONS
India is a leader in the global ship recycling industry with a share of over thirty per
cent.The ship-recycling industry is a labour-intensive sector, but, it is susceptible to concerns
relating to environmental safety. The existing regulatory framework, namely, the Ship Breaking
Code (Revised), 2013, governs the ship recycling activity in India and lays down the standards
for environmental protection and workers' safety. However, the said Code does not provide
penalties for contravention of the provisions of the Code or deal with the restrictions and
prohibitions on use of hazardous materials on ships.
SECTION Section 116

Untitled Section

2.In view of the above, it is proposed to enact a legislation to provide for restrictions
or prohibitions on use of hazardous material on ships and 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.
SECTION Section 117

Untitled Section

3.The proposed Recycling of Ships Bill, 2019, inter alia, provides for the following,
namely:—
(i)to designate an Authority to be called the National Authority to administer,
supervise and monitor all activities relating to ship recycling;
(ii) to designate an Authority to be called the Competent Authority, to perform
the prescribed duties within the geographical areas of expertise;
(iii) the provisions of this Bill shall not apply to any warship, naval auxiliary, or
other ships owned or operated by the Government and used for Government non-
commercial purpose;
(iv) to provide that no ship shall install or use any prohibited hazardous material
notified by the Central Government;
(v)to issue a certificate on inventory of hazardous materials and ready for
recycling certificate which are an essential documents to the ships which are destined
to be recycled by its owner;
(vi) the provisions relating to ship recycling plan which shall be prepared by the
Ship Recycler and the general requirements for recycling of ships;
(vii) to impose an obligation on the Ship Recycler to take measures for protection
of environment during the process of ship recycling; and
(viii) providing for appeal against the orders of Competent Authority to the
National Authority and from the National Authority to the Central Government.
SECTION Section 118

Untitled Section

4.The Notes on clauses explain in detail the various provisions contained in the Bill.
SECTION Section 119

Untitled Section

5.The Bill seeks to achieve the above objectives.
N
EW DELHI; MANSUKH MANDA VIYA
The 21st November, 2019.
Notes on Clauses
SECTION Section 12

Untitled Section

7.Surveys.
SECTION Section 120

Untitled Section

Clause 1. This Clause relates to the short title and commencement of the proposed
legislation and enables the Central Government to appoint a date with respect to the
commencement of the provisions of the proposed legislation. This Clause also specifies that
the legislation shall apply to every existing ship, every new ship required to be registered in
India, other ships while there within the Exclusive Economic Zone or territory borders of
India and all ship recycling facilities within the territorial jurisdiction of India.
SECTION Section 121

Untitled Section

Clause 2. This Clause contains the definition of various expressions used in the
proposed legislation.
SECTION Section 122

Untitled Section

Clause 3. This Clause provides that the Central Government will designate an officer
not below the rank of Joint Secretary, as National Authority to administer, supervise and
monitor all activities relating to ship recycling under this legislation.
SECTION Section 123

Untitled Section

Clause 4. This Clause provides that the Central Government shall designate the
Competent Authority for performance of specified duties in the prescribed geographical
area or area of expertise.
SECTION Section 124

Untitled Section

Clause 5. This Clause provides that the chapter on "Requirements for Ships" will not
apply to any ship owned or operated by the Government and used for noncommercial
purposes and ships of less than five hundred gross tonnage.
SECTION Section 125

Untitled Section

Clause 6. This Clause empowers the Central Government to control installation or use
of notified prohibited hazardous materials on ships.
SECTION Section 126

Untitled Section

Clause 7. This Clause empowers the national authority or the person or organization
authorized by Central Government to conduct different types of surveys of the ships.
SECTION Section 127

Untitled Section

Clause 8. This Clause provides that every ship should posses and maintain a Certificate
on Inventory of Hazardous Materials and lays down the process for issue of the Certificate.
SECTION Section 128

Untitled Section

Clause 9. This Clause lays down the period of validity of the Certificate on Inventory
of Hazardous Materials.
SECTION Section 129

Untitled Section

Clause 10. This Clause lays down the process for suspension or cancellation of the
Certificate on Inventory of Hazardous Materials.
SECTION Section 13

Untitled Section

8.Certificate on inventory of hazardous materials.
SECTION Section 130

Untitled Section

Clause 11. This Clause provides that no ship shall be recycled in a facility not authorized
under this Act.
SECTION Section 131

Untitled Section

Clause 12. This Clause lays down the process for authorization of ship recycling
facility.
SECTION Section 132

Untitled Section

Clause 13. This Clause lays down the process for suspension or cancellation of
authorization of ship recycling facility.
SECTION Section 133

Untitled Section

Clause 14. This Clause provides that every ship recycler shall maintain adequate
measures for emergency preparedness and response as per the provisions of factory Act,
SECTION Section 135

Untitled Section

Clause 15. This Clause provides that every ship recycler shall maintain adequate
measures for workers' safety, health, instruction, supervision, training and welfare as per the
provisions of factory Act, 1948.
SECTION Section 136

Untitled Section

Clause 16. This Clause lays down the process for issue of Ready for Recycling
Certificate and its validity.
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SECTION Section 137

Untitled Section

Clause 17. This Clause lays down the requirement of a ship recycling plan for every
ship to be recycled and the process for its preparation and approval.
SECTION Section 138

Untitled Section

Clause 18. This Clause prescribes general requirements of prior permission for recycling
of the ship.
SECTION Section 139

Untitled Section

Clause 19. This Clause prescribes certain obligations on the part of owner of a ship
which is intended to be recycled in India.
SECTION Section 14

Untitled Section

9.Validity of certificate.
SECTION Section 140

Untitled Section

Clause 20. This Clause prescribes the process for grant of permission for recycling of
a ship.
SECTION Section 141

Untitled Section

Clause 21. This Clause prescribes certain obligations on the part of ship recycler for
safe and environmentally sound management of hazardous materials.
SECTION Section 142

Untitled Section

Clause 22. This Clause prescribes certain obligations on the part of ship recycler for
taking measures for protection of environment.
SECTION Section 143

Untitled Section

Clause 23. This Clause prescribes that statement of completion will be issued after a
ship has been recycled in accordance with the provisions of the legislations.
SECTION Section 144

Untitled Section

Clause 24. This Clause provides for submission of reports by the Competent Authority
to the National Authority.
SECTION Section 145

Untitled Section

Clause 25. This Clause provides for appeal against the decisions of the Competent
Authority.
SECTION Section 146

Untitled Section

Clause 26. This Clause provides for appeal against the decisions of the National
Authority.
SECTION Section 147

Untitled Section

Clause 27. This Clause empowers the National Authority or the Competent Authority
to search and seize any records if it has reason to believe that any offence under this
legislation has been or is being committed in any ship recycling facility.
SECTION Section 148

Untitled Section

Clause 28. This Clause empowers the National Authority or any authorized surveyor
to inspect, dismiss, exclude and detain a ship when it's not carrying valid certificate or is not
complying with the control measures for hazardous materials.
SECTION Section 149

Untitled Section

Clause 29. This Clause empowers the Central Government to exempt any vessel or any
class of vessels or any ship recycling facility or any ship recycler, by an order in writing and
subject to specified conditions, from the provisions of this legislation.
SECTION Section 15

Untitled Section

10.Suspension or cancellation of certificate.
SECTION Section 150

Untitled Section

Clause 30. This Clause empowers the Central Government to specify any category of
ships to which the provisions of this legislation will not apply.
SECTION Section 151

Untitled Section

Clause 31. This Clause prescribes the penalties for contravention of the provisions of
this legislation or rules or regulations made this legislation.
SECTION Section 152

Untitled Section

Clause 32. This Clause prescribes the penalties for contravention of the provisions of
this legislation or rules or regulations made this legislation, for which no specific punishment
has been provided in this legislation.
SECTION Section 153

Untitled Section

Clause 33. This Clause prescribes punishment for other offences under this legislation,
when a ship under detention proceeds to the sea before it is released and when any person
authorized to detain or survey a ship is restrained or detained or forcibly taken to sea.
SECTION Section 154

Untitled Section

Clause 34. This Clause relates to the offences by companies and inter alia, states that
if the person committing an offence under the proposed legislation is a company, then, every
person who, at the time the offence was committed was in charge of, and was responsible to,
the company for the conduct of 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.This Clause further provides that no such person shall be liable to punishment
if he proves that the offence was committed without his knowledge or that he exercised all
due diligence to prevent the commission of such offence.
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SECTION Section 155

Untitled Section

Clause 35. This Clause provides that offences this under legislation will be non-
cognizable, bailable and compoundable.
SECTION Section 156

Untitled Section

Clause 36. This Clause provides that a court will take cognizance of any offence under
this legislation only on a complaint by the Central Government, National Authority, Competent
Authority or an Authorized Officer.
SECTION Section 157

Untitled Section

Clause 37. This Clause provides for determination and recovery of amount payable
on account of expenses when any offence is committed under Clause 33 of this legislation.
SECTION Section 158

Untitled Section

Clause 38. This Clause specifies the place and the jurisdiction of the court for trial for
an offence under this legislation.
SECTION Section 159

Untitled Section

Clause 39. This Clause provides for payment of compensation for any loss or damage
suffered by any ship which is found to be unduly detained or delayed without any reasonable
cause and provides that the Central Government may nominate an officer of the rank of Joint
Secretary or above as the adjudicating officer for adjudging the compensation.
SECTION Section 16

Untitled Section

CHAPTER IV
S
HIP RECYCLING FACILITY
SECTION Section 160

Untitled Section

Clause 40. This Clause provides that Central Government may delegate its powers
under this legislation to National Authority or Competent Authority or an officer not below
the rank of Joint Secretary and also provides for delegation of its powers by the National
Authority or the Competent Authority or any officer of Authority.
SECTION Section 161

Untitled Section

Clause 41. This Clause provides that the provisions of this legislation will be in
addition to and not over rule the provisions of any other legislation already in force.
SECTION Section 162

Untitled Section

Clause 42. This Clause provides that the Central Government may, by notification
make rules for carrying out the provisions of this legislation.
SECTION Section 163

Untitled Section

Clause 43. This Clause provides that the National Authority may, with the prior approval
of Central Government and by notification, make regulations for carrying out the provisions
of this legislation.
SECTION Section 164

Untitled Section

Clause 44. This Clause provides that every rule and regulation made under this
legislation shall be laid, as soon as may be after it is made, before each house of Parliament.
SECTION Section 165

Untitled Section

Clause 45. This Clause gives protection to the Central Government or State Government
or the National Authority or Competent Authority or any authorized person for anything
which is done or intended to be done in good faith in pursuance of the provisions of this
legislation.
SECTION Section 166

Untitled Section

Clause 46. This Clause relates to removal of difficulties and provides that if any
difficulty arises in giving effect to the provisions of the proposed legislation, the Central
Government may, by order, published in the Official Gazette, make such provisions not
inconsistent with the provisions of the Act, as appears to it to be necessary or expedient for
removing the difficulty and that every such order laid, as soon as may be after it is made,
before each house of Parliament.
FINANCIAL MEMORANDUM
The provisions of the proposed Bill does not involve any expenditure either recurring
or non-recurring from the Consolidated Fund of India.
20
MEMORANDUM REGARDING DELEGATED LEGISLATION
SECTION Section 167

Untitled Section

Clause 42 of the Recycling of Ships Bill, 2019 seeks to empower the Central Government
to make rules for—(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 Section 168

Untitled Section

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/comprehensive insurance cover for
permanent/ temporary workers under section (2) of section 15; (j) the manner of advance
intimation about the arrival of ships under sub-section (1) of section 19; (k) requisition of the
services of representatives of agencies and procedure 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 sub-section (1) of 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, the 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.
SECTION Section 169

Untitled Section

2.Clause 43 of the Bill empowers the National Authority, with the previous approval
of the Central Government, by notification in the Official Gazette, to make regulations not
inconsistent with the provisions of this Act and the rules made there under to provide for—
(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 making an application to the National Authority for a ready for recycling
certificate under sub-section (1) of section 16; (g) the manner and format for issuing of the
ready for recycling certificate under sub-section (2) of section 16; (h) the manner of enquiry
or inspection by the Competent Authority under sub-section (2) of section 13; (i) the manner
of obtaining the written permission of the Competent Authority under sub-section (1) of
SECTION Section 17

Untitled Section

11.Authorisation of ship recycling facility.
SECTION Section 170

Untitled Section

section 18; (j) the authority to authorise the ship recycling facility under sub-section (2) of
SECTION Section 171

Untitled Section

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
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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 Section 172

Untitled Section

section 23; and (q) any other matter which is required to be, or may be, specified by regulations.
SECTION Section 173

Untitled Section

3.The matters in respect of which the aforementioned rules and regulations may be
made are matters of procedure and administrative detail, and as such, it is not practicable to
provide for them in the proposed Bill itself. The delegation of legislative power is, therefore,
of a normal character.
LOK SABHA
————
A
BILL
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.
————
(Shri Mansukh Mandaviya, Minister of State of Chemicals & Fertilizers.)
MGIPMRND—3570LS—21.11.2019.
SECTION Section 18

Untitled Section

12.Ship recycling facility management plan and procedure for authorisation of ship
recycling facility.
SECTION Section 19

Untitled Section

13.Suspension or cancellation of authorisation.
SECTION Section 2

Untitled Section

CHAPTER I
PRELIMINARY
SECTION Section 20

Untitled Section

14.Emergency preparedness and response.
SECTION Section 21

Untitled Section

15.Workers safety, training and insurance.
SECTION Section 22

Untitled Section

CHAPTER V
PROCESS OF RECYCLING OF SHIPS
SECTION Section 23

Untitled Section

16.Ready for recycling certificate.
SECTION Section 24

Untitled Section

17.Ship recycling plan.
SECTION Section 25

Untitled Section

18.General requirements.
SECTION Section 26

Untitled Section

19.Obligations on part of ship owner.
SECTION Section 27

Untitled Section

20.Procedure for grant of permission for ship recycling.
SECTION Section 28

Untitled Section

21.Safe and environmentally sound management of hazardous materials.
SECTION Section 29

Untitled Section

22.Obligation on Ship Recycler to take measures for protection of environment.
AS INTRODUCED IN LOK SABHA
Bill No. 361 of 2019
SECTION Section 30

Untitled Section

CHAPTER VI
REPORTING REQUIREMENTS
SECTION Section 32

Untitled Section

23.Statement of completion.
SECTION Section 33

Untitled Section

24.Report to National Authority.
SECTION Section 34

Untitled Section

CHAPTER VII
APPEALS
SECTION Section 35

Untitled Section

25.Appeal against decision of Competent Authority.
SECTION Section 36

Untitled Section

26.Appeal against decision of National Authority.
SECTION Section 37

Untitled Section

CHAPTER VIII
POWERS AND FUNCTIONS OF NATIONAL AUTHORITY, COMPETENT AUTHORITY AND
CENTRAL GOVERNMENT
SECTION Section 38

Untitled Section

27.Power to search and seize records, etc.
SECTION Section 39

Untitled Section

28.Power to inspect, dismiss, exclude or detain a ship.
SECTION Section 4

Untitled Section

1.Short title, commencement and application.
SECTION Section 40

Untitled Section

29.Power to exempt.
SECTION Section 41

Untitled Section

30.Act not to apply to certain ships.
SECTION Section 42

Untitled Section

CHAPTER IX
O
FFENCES, PENALTIES AND COMPENSATION
SECTION Section 43

Untitled Section

31.Penalty for contravention of provisions of Act or rules or regulations.
SECTION Section 44

Untitled Section

32.Penalty for contravention of provisions of this Act or rules or regulations for which
no specific punishment is provided.
SECTION Section 45

Untitled Section

33.Punishment for other offences.
SECTION Section 46

Untitled Section

34.Offences by companies.
SECTION Section 47

Untitled Section

35.Offences to be non-cognizable, bailable and compoundable.
SECTION Section 48

Untitled Section

36.Cognizance of offences.
SECTION Section 49

Untitled Section

37.Amount payable by owner, master or agent.
SECTION Section 5

Untitled Section

2.Definitions.
SECTION Section 50

Untitled Section

38.Place of trial and jurisdiction of court.
SECTION Section 51

Untitled Section

39.Compensation.
SECTION Section 52

Untitled Section

CHAPTER X
M
ISCELLANEOUS
SECTION Section 53

Untitled Section

40.Delegation of powers.
SECTION Section 54

Untitled Section

41.Act not in derogation of any other law.
SECTION Section 55

Untitled Section

42.Power to make rules.
SECTION Section 56

Untitled Section

43.Power to make regulations.
SECTION Section 57

Untitled Section

44.Laying of rules and regulations.
SECTION Section 58

Untitled Section

45.Protection of action taken in good faith.
SECTION Section 59

Untitled Section

46.Removal of difficulties.
(ii)
THE RECYCLING OF SHIPS BILL, 2019
A
BILL
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.
W
HEREAS , 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;
A
ND 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;
A
ND 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;
AS INTRODUCED IN LOK SABHA
Bill No. 361 of 2019
2
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;
A
ND 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;
A
ND 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:—
SECTION Section 6

Untitled Section

CHAPTER II
AUTHORITIES UNDER THE ACT
SECTION Section 60

Untitled Section

CHAPTER I
PRELIMINARY
SECTION Section 61

Untitled Section

1.(1) This Act may be called the Recycling of Ships Act, 2019.
(2)It shall come into force on such date 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;
(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.
SECTION Section 62

Untitled Section

2.(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;
Short title,
commencement
and
application.
Definitions.
80 of 1976.
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(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 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 Section 63

Untitled Section

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
44 of 1958.
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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;
(ii) Inland Vessels Act, 1917;
(iii) Petroleum Act, 1934;
(iv) Factories Act, 1948;
(v)Merchant Shipping Act, 1958;
(vi) Atomic Energy Act,1962;
(vii) Wildlife (Protection) Act, 1972;
(viii) Water (Prevention and Control of Pollution) Act, 1974;
(ix) Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other
Maritime Zones Act, 1976;
(x)Forest (Conservation) Act, 1980;
(xi) Air (Prevention and Control of Pollution) Act, 1981;
(xii) Environment (Protection) Act, 1986,
shall have the same meanings respectively assigned to them in those Acts.
SECTION Section 64

Untitled Section

CHAPTER II
A
UTHORITIES UNDER THE ACT
SECTION Section 65

Untitled Section

3.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.
SECTION Section 66

Untitled Section

4.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.
SECTION Section 67

Untitled Section

CHAPTER III
R
EQUIREMENTS FOR SHIPS
SECTION Section 68

Untitled Section

5.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.
SECTION Section 69

Untitled Section

6.(1) No ship shall install 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.
4 of 1884.
1 of 1917.
30 of 1934.
44 of 1958.
33 of 1962.
53 of 1972.
6 of 1974.
80 of 1976.
69 of 1980.
14 of 1981.
29 of 1986.
Designation of
National
Authority.
Designation of
Competent
Authority.
Non-
application of
provisions of
this Chapter.
Controls on
hazardous
materials.
5
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63 of 1948.
5
SECTION Section 7

Untitled Section

3.Designation of National Authority.
SECTION Section 70

Untitled Section

7.(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.
SECTION Section 71

Untitled Section

8.(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.
(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.
Surveys.
Certificate on
inventory of
hazardous
materials.
5
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SECTION Section 72

Untitled Section

9.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.
SECTION Section 73

Untitled Section

10.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.
SECTION Section 74

Untitled Section

CHAPTER IV
S
HIP RECYCLING FACILITY
SECTION Section 75

Untitled Section

11.No Ship Recycler shall recycle a ship, unless the ship recycling facility is authorised
as per the procedure laid down in section 12.
SECTION Section 76

Untitled Section

12.(1) A Ship Recycler seeking a certificate of authorisation for ship recycling facility
from the 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
Validity of
certificate.
Suspension or
cancellation
of certificate.
Authorisation
of ship
recycling
facility.
Ship recycling
facility
management
plan and
procedure for
authorisation
of ship
recycling
facility.
5
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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.
SECTION Section 77

Untitled Section

13.(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).
SECTION Section 78

Untitled Section

14.Every Ship Recycler shall maintain adequate measures for emergency preparedness
and response in accordance with the provisions of the Factories Act, 1948 in his ship
recycling facility.
SECTION Section 79

Untitled Section

15.(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 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.
Suspension or
cancellation
of
authorisation.
Emergency
preparedness
and response.
Workers
safety,
training and
insurance.
63 of 1948.
63 of 1948.
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SECTION Section 8

Untitled Section

4.Designation of Competent Authority.
SECTION Section 80

Untitled Section

CHAPTER V
PROCESS OF RECYCLING OF SHIPS
SECTION Section 81

Untitled Section

16.(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.
SECTION Section 82

Untitled Section

17.(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.
SECTION Section 83

Untitled Section

18.(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.
SECTION Section 84

Untitled Section

19.(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 fulfill such conditions for safe-for-entry or safe-for-hotwork or both, as specified by
the regulations.
SECTION Section 85

Untitled Section

20.(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.
Ready for
recycling
certificate.
Ship recycling
plan.
General
requirements.
Obligations on
part of ship
owner.
Procedure for
grant of
permission for
ship recycling.
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(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.
SECTION Section 86

Untitled Section

21.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.
SECTION Section 87

Untitled Section

22.(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.
SECTION Section 88

Untitled Section

CHAPTER VI
R
EPORTING REQUIREMENTS
SECTION Section 89

Untitled Section

23.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.
SECTION Section 9

Untitled Section

CHAPTER III
REQUIREMENTS FOR SHIPS
SECTION Section 90

Untitled Section

24.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.
SECTION Section 91

Untitled Section

CHAPTER VII
A
PPEALS
SECTION Section 92

Untitled Section

25.(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.
Safe and
environmentally
sound
management
of hazardous
materials.
Obligation on
Ship Recycler
to take
measures for
protection of
environment.
Statement of
completion.
Report to
National
Authority.
Appeal against
decision of
Competent
Authority.
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SECTION Section 93

Untitled Section

26.(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.
SECTION Section 94

Untitled Section

CHAPTER VIII
P
OWERS AND FUNCTIONS OF NATIONAL AUTHORITY, COMPETENT AUTHORITY AND
CENTRAL GOVERNMENT
27.(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 relating to searches and
seizures shall, so far as may be, apply to every search or seizure made under this Act.
28.(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.(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 with in
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.
Appeal against
decision of
National
Authority.
Power to
search and
seize records,
etc.
Power to
inspect,
dismiss,
exclude or
detain a ship.
2 of 1974.
Power to
exempt.
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30.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.
SECTION Section 95

Untitled Section

CHAPTER IX
OFFENCES, PENALTIES AND COMPENSATION
SECTION Section 96

Untitled Section

31.( 1) Whoever installs 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 Section 97

Untitled Section

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.
SECTION Section 98

Untitled Section

32.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.
SECTION Section 99

Untitled Section

33.(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.
Act not to
apply to
certain ships.
Penalty for
contravention
of provisions
of Act or rules
or regulations.
Penalty for
contravention
of provisions
of this Act or
rules or
regulations for
which no
specific
punishment is
provided.
Punishment
for other
offences.
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