Alphard Maritime Group has announced plans to set up a $500 million shipping fund in Gujarat’s International Finance Tec-City (GIFT City) to bolster India’s shipping tonnage. Speaking at the ‘Global Ports and Shipping Summit’ in Mumbai, Captain Alok Kumar, Chairman and Promoter of Alphard Maritime, emphasised the fund’s role in supporting Indian fleet owners. The initiative will see Alphard contribute Rs 5 billion, while associates will provide an additional Rs 45 billion, aiming to help Indian fleet owners acquire assets valued between $10-20 million. “Once operational, the fund will serve as an enabler for Indian shipping tonnage,” Capt. Alok said. GIFT City, India’s first International Financial Services Centre (IFSC), has become a hub for shipping companies to explore ship leasing opportunities. Alphard is one of a dozen firms leveraging this platform to facilitate shipbuilding and financing activities. With the Union government offering financial assistance to local shipyards, Alphard Maritime is keen to support the domestic shipbuilding industry from the start. Capt. Alok also suggested that Indian banks, which currently lack a dedicated shipping desk, should establish a fund exclusively for the sector. The fund is being developed in collaboration with PwC and is backed by European lenders already doing business with Alphard. Capt. Alok also urged the government to create a dedicated shipping fund at GIFT City to further attract investments. He highlighted some regulatory challenges, suggesting that GIFT City should have its own infrastructure for ship registration and certification. Alternatively, he proposed establishing a local office of the Directorate General of Shipping to expedite processes, noting that current clearances in India can take up to a month compared to just two hours in international jurisdictions. In addition, Capt. Alok recommended that state-owned enterprises like ONGC should offer long-term contracts (10-15 years) for offshore vessels, which would incentivise fleet owners to build ships domestically, despite higher costs due to Goods and Services Tax (GST) implications. Alphard Maritime sees GIFT City as a strategic location for ship leasing due to various tax exemptions and incentives. “It makes economic sense to come through GIFT City, and once more transactions occur, the initial issues will be resolved,” he concluded. (ET)