Ship leasing

In order to broaden the coverage of critical sectors essential for development of a financial centre, the IFSCA notified a framework for ship leasing from the IFSC in 2022. The IFSC is notified as a multi-services special economic zone in India which offers various incentives and benefits to entities operating in the financial services sector. Some of the benefits of ship leasing in the IFSC include tax exemptions, lower capital requirements, exemption from prudential regulatory norms, no import duty, no stamp duty and no withholding tax on lease payments to non-residents.

The ship leasing sector in the IFSC aims to realise the vision of the ‘Ship Acquisition Financing and Leasing’ (SAFAL) report, which was released by the IFSCA in 2020. The SAFAL report envisaged the creation of a ship leasing and financing hub in India, which can cater to the domestic and international maritime industry and enhance the competitiveness and growth of the Indian shipping sector. Ship leasing in the IFSC is a financial product which involves the lease of a ship or ocean vessel, or any part thereof, for a specified period and fee. Ship leasing in the IFSC can be an operating lease, financial lease or a hybrid of both.