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By Narendra Taneja, New Delhi Tradewinds

ALANG, India, 8 February 2002-- Indian scrappers have joined hands with domestic banks in their fight to check what they call a "growing menace" of problematic maritime liens and debts.

A delegation from scrapping interests and representatives from the State Bank of India, Bank of India, Dena Bank, Punjab National Bank and Oriental Bank of Commerce as well as a few other lenders to the shipbreaking industry, have met near Alang to work out a strategy and systems to prevent the recurrence of problems in maritime lien and debts.

"We took the initiative to call the meeting. Just a handful of cash buyers are ruining the name of our entire scrapping industry," said a board member of the Gujarat Shipbreakers´ Association.

The world´s largest scrapping complex is located at Alang in Gujarat, a province in western India.

The meeting was called following the failed delivery by the Anil Sharma and Komal Sharma brothers´ 1974-built bulker Lima I to Jain Udyog of Calcutta, despite having received full payment.

The meeting of scrappers and bankers also advised all breakers "not to purchase any ship from such cash buyers who have not solved their problems so far and not fulfilled their commitments to give lien-free ships to buyers".

The meeting singled out the Sharma brothers and "other such cash buyers". The banks announced at the meeting that they would no longer open letters of credit for deals involving what they called "tainted" cash buyers.

The scrappers also demanded that the cash buyer "should become the owner of the vessel" and obtain "physical delivery" of it before he says that he is ready to beach the ship.

"I would say that there is a revolt in Alang against the community of cash buyers," said Alang trader R Patel. "The Sharma brothers had become too big and too arrogant. Hence they are being singled out for the harsh criticism," he added.

Most Alang scrappers want the end of cash buyers so that they can return to their old ways and traditions. "These cash buyers have destroyed the culture, image and the working of our industry. They play dirty tricks and the name of all of us gets maligned," said a prominent Alang scrapper who requested anonymity.

Old-timers at Alang are hoping that the developments following the Komal Sharma episode will lead to a new business and work culture in the Indian scrapping industry. They warn, however, against underestimating the might and mind of cash buyers. By Narendra Taneja from New Delhi Tradewinds, February 8th, 2002