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Private Sector | Gujarat - India | PID: 203342
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The Central government's planned ship owning and leasing entity will benefit from proposed permits given to companies with a variable capital company structure, as set out in the Union Budget 2024-25. It will also provide a fillip to ship owning and leasing companies in the Gujarat International Finance Tec-City (GIFT City).
Union Ports, Shipping, and Waterways Minister Sarbananda Sonowal informed that ownership, leasing and flagging reforms will be implemented to improve the share of the Indian shipping industry and generate more employment. The move points to flexible financing models and incentives for companies that lease ships.
Besides leasing from GIFT, the government plans for creating a financing ecosystem for ships is also expected to get a boost. The proposed leasing entity will aggregate demand and provide services, and it will be a special purpose vehicle (SPV) with specific state-owned firms having cargo interests to jointly buy and run ships.
It is expected to be backed by a Rs 30,000 crore Maritime Development Fund (MDF). This fund will address the financing constraints of projects in the maritime sector.
| Updated on: 02 - Sep - 2024
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