Govt Boosts Indian Shipping with New Leasing Entity
PORTS & SHIPPING

Govt Boosts Indian Shipping with New Leasing Entity

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code