Adani proposes ₹1,689-crore investment for ship leasing firm in Gift City

Adani Ports and Special Economic Zone Ltd (APSEZ) has announced a significant investment of ₹1,689 crore for the establishment of Poseidon Leasing IFSC Ltd, a step-down subsidiary company, to operate within the GIFT SEZ in Gujarat. The move marks a strategic endeavor to venture into ship leasing activities, encompassing both operating and financial leases of ships, ocean-going vessels, and related components.

Poseidon Leasing IFSC Ltd has been set up under the umbrella of another APSEZ subsidiary, Shanti Sagar International Dredging Ltd (SSIDL), which will hold full ownership of Poseidon. The newly formed entity will boast an authorized and paid-up capital of ₹2.5 crore, divided into 25,00,000 equity shares of ₹10 each, according to prior stock market disclosures.

While the company is yet to formally respond to queries from Business Line, sources familiar with the matter revealed that three director names have been proposed for the venture.

This move by the Adani Group signifies their active expansion within the maritime sector, particularly in ports and terminals across India. Establishing a ship leasing entity within Gift City holds strategic significance as it enables Indian firms to conduct transactions in foreign currency, thus attracting companies that previously operated overseas due to regulatory and tax considerations.

The decision to set up ship leasing operations at Gift City aligns with the broader trend of Indian entities seeking regulatory clarity and tax incentives domestically, rather than opting for offshore locations like Dubai or Singapore. Gift City offers various tax breaks, including income tax waivers for up to 10 consecutive years within the first 15 years of operation, along with exemptions on input GST for services procured from Indian or non-resident vendors.

Ripley, a Kolkata-based company, has already established Ripley Shipping India IFSC Pvt Ltd at Gift City in December 2022, pioneering ship leasing activities in the region. Meanwhile, Reliance Industries has also ventured into the ship leasing domain at IFSC-Gift City with a substantial investment totaling ₹22,033 crore.

With an estimated $75 billion spent annually on seaborne freight to foreign shipping companies and a global charter hire market valued at $100 billion, the emergence of Gift City as a hub for ship leasing activities promises significant opportunities for Indian companies to capitalize on the growing maritime sector while benefiting from favorable regulatory and tax frameworks.

HBL