The memorandum of understanding (MOU) focuses on technology transfer and financial assistance from Japan to upgrade the yard at Alang to international standards.
A senior GMB official said they would undertake modernisation and mechanisation of the ship dismantling works at Alang yard, to make it an International Maritime Organisation complied ship recycling yard in the world.
In addition, the MoU includes construction and operation of a common hazardous waste removal pre-treatment facility, recyclable goods market overhaul and development of human resources.
A feasibility study of the existing set up at the Alang yard will be carried out and various upgrade methods will be suggested by Japan External Trade organisation and Japan Development Institute.
The project is expected to be complete by 2012-13.