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.