Within the special economic zone (SEZ) limit of Mundra Port, Adani Ports and Special Economic Zone (APSEZ) proposes to set up a ship-breaking yard in about 40 hectare land.
The Adani Group firm reportedly plans to set up the yard close to a boundary of the existing Mundra West Port in the next one or two years with an initial target of dismantling and recycling 40 ships every year.
Nearly 20 hectare land will be used for actual breaking of ships and the rest would be used for other infrastructural facilities.
The company has reportedly made a detailed presentation on this recently to some state government officials.
The company may face challenge in securing regulatory clearance for the project as the state government is of the view that port regulator Gujarat Maritime Board (GMB) entered into an agreement with Adani for developing port and related activities at Mundra and ship breaking is an altogether different business.
GMB is in the process of hiring consultants for coming out with a new policy for privatization in ship-breaking industry.