The Great Eastern Shipping Company to Open Ship Leasing Unit in IFSC-GIFT City
India’s foremost private fleet owner, The Great Eastern Shipping Company Ltd, has received board approval to establish a ship leasing unit in the International Financial Services Centre (IFSC) at GIFT City. This strategic move aims to delve into ship leasing activities, including vessel ownership, operation, and chartering, leveraging the tax incentives provided under the Special Economic Zone Act.
The initiative marks a significant milestone as The Great Eastern Shipping Company becomes the inaugural member of the Indian National Shipowners Association (INSA) to set up a unit in IFSC-GIFT City. This move seeks to address competitive disadvantages in taxation and finance faced by fleet owners operating under the domestic tariff area (DTA) regime, while also fostering the expansion of Indian tonnage.
IFSC-GIFT City, India’s pioneering International Financial Services Centre, offers a conducive environment for shipping companies, presenting a host of tax incentives and exemptions. These include a tax holiday for ten of the first fifteen years, exemption from capital gains during the tax holiday period, and relief from Goods and Services Tax (GST), among others.
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The establishment of The Great Eastern Shipping (IFSC) Ltd underscores the government’s commitment to bolstering Indian tonnage and revitalizing the maritime sector. With India’s flag shipping tonnage trailing behind international standards, initiatives such as IFSCA’s incentives aim to spur growth and competitiveness in the global shipping arena.
Amidst discussions surrounding the shift from Mumbai to Ahmedabad, industry stakeholders emphasize the importance of attracting ships from international hubs like Singapore and Dubai. The move towards IFSC-GIFT City aligns with broader objectives to enhance India’s economic and environmental interests through the promotion of Indian tonnage.
Anil Devli, CEO of INSA, highlights the challenges faced by Indian ship owners in the existing regulatory framework, underscoring the need for long-term funding and specialized shipping finance. The transition to IFSCA’s platform offers a promising avenue to address these concerns, facilitating greater alignment with global shipping standards and fostering a conducive ecosystem for sustainable growth.
In essence, The Great Eastern Shipping Company’s foray into IFSC-GIFT City heralds a new era of opportunities for India’s maritime sector, offering a pathway to enhanced competitiveness and resilience in the global shipping landscape.
This strategic move by The Great Eastern Shipping Company signals a paradigm shift in the Indian maritime industry, reflecting a concerted effort towards revitalizing the nation’s shipping sector. With IFSC-GIFT City emerging as a beacon of financial innovation and regulatory flexibility, shipping companies are poised to capitalize on a conducive environment conducive to growth and expansion.
Moreover, the establishment of The Great Eastern Shipping (IFSC) Ltd underscores the company’s commitment to driving innovation and embracing new opportunities in the dynamic global shipping landscape. By leveraging IFSCA’s incentives and exemptions, The Great Eastern Shipping Company aims to enhance its competitiveness and contribute to India’s emergence as a formidable player in the maritime domain.
As the maritime sector undergoes transformative changes, initiatives such as IFSC-GIFT City are instrumental in fostering a conducive ecosystem for sustainable growth and development. Through strategic partnerships and proactive measures, stakeholders aim to propel India’s maritime industry to new heights of success and prosperity.
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News Source: infra.economictimes.indiatimes.com
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