Govt Boosts Indian Shipping with New Leasing Entity

26 Jul 2024 CW Team

The central government's planned ship owning and leasing entity will gain significant advantages from the proposed permits for companies with a variable capital company structure, as outlined in the Union Budget 2024-25. This initiative will also enhance ship owning and leasing activities within the Gujarat International Finance Tec-City (GIFT City).

Union Ports, Shipping, and Waterways Minister Sarbananda Sonowal emphasized the impact of these reforms: "Ownership, leasing, and flagging reforms will be implemented to improve the share of the Indian shipping industry and generate more employment."

The share of overseas cargo carried by Indian flagged ships has dramatically declined from over 40% in the 1980s to less than 7% today. The new measures aim to reverse this trend by introducing flexible financing models and offering incentives for ship-leasing companies.

"Measures announced in the budget will allow companies to take advantage of the GIFT International Financial Services Centre (IFSC) dispensation," a top government official stated. The IFSC Authority recognized ship leasing as a financial product in January 2022, and by 2023, it expanded to include ship brokering and voyage charter-related services.

Leasing ships from the IFSC brings several benefits, including liberal policies, tax advantages, and the benefits of operating within a deemed foreign jurisdiction.

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..

BCCL Hands Over Dugdha Coal Washery To JSW Steel

Bharat Coking Coal has handed over the Dugdha Coal Washery to JSW Steel, marking the first coal washery asset monetisation under the Ministry of Coal's asset monetisation programme. The handover took place in the presence of senior officials from Bharat Coking Coal Ltd, JSW Steel and JSW Energy. The washery has a capacity of two million tonnes per annum (mn t per annum), and its transfer is intended to introduce private sector practices into coal beneficiation operations. The monetisation is aimed at modernising coal sector assets, improving operational efficiency and enhancing resource utilis..