Alphard Maritime Group intends to establish a $500 million shipping fund within the Gujarat International Finance Tec-City (GIFT City) as part of its efforts to bolster Indian shipping tonnage, according to its Chairman and Promoter, Captain Alok Kumar. GIFT City, recognised as India’s first International Financial Services Centre, has already attracted several shipping companies, including Alphard Maritime, which has opened a unit there to engage in ship leasing activities.
Captain Kumar revealed in an interview with ET Infra during the ‘Global Ports and Shipping Summit’ in Mumbai that Alphard Maritime plans to contribute Rs 5 billion to the fund, with its associates expected to bring in an additional Rs 45 billion. The fund is designed to support Indian fleet owners in acquiring assets valued between $10-20 million, with the ultimate goal of becoming an enabler for the country’s shipping tonnage.
With the Indian government offering financial assistance to local shipyards, Alphard Maritime has expressed interest in supporting shipbuilding efforts in the country from the outset. Captain Kumar indicated that once the company successfully demonstrates the feasibility of such endeavours, they would encourage banks to provide funding for ship construction. He pointed out, however, that no Indian banks currently have dedicated shipping desks.
Captain Kumar also mentioned that European lenders were already collaborating with Alphard Maritime and would take the lead in establishing the fund. Talks with PwC were progressing, and the fund’s creation was expected soon. He called upon the government to initiate a dedicated shipping fund at GIFT City and to encourage banks to allocate funds specifically for the shipping sector. While acknowledging the government’s subsidies for shipbuilding in India, Captain Kumar noted that the high cost of Goods and Services Tax (GST) made building ships abroad a more attractive option due to its speed and lower expenses. To mitigate this issue, he suggested that state-owned enterprises like the Oil and Natural Gas Corporation Ltd (ONGC) should offer long-term contracts, spanning 10 to 15 years, to ship owners. These extended contracts, he argued, would incentivise companies to build vessels domestically, with Alphard Maritime committing to constructing ships in India if such agreements were in place.
He further highlighted that Vietnamese and Indonesian companies, backed by Chinese funding, were currently dominating India’s offshore vessel market by deploying older vessels just before they reached the 21-year age limit set by the government. To promote domestic companies, Captain Kumar urged that long-term contracts be awarded, with a stipulation that vessels be constructed in India. While praising GIFT City’s efforts in promoting ship leasing through a streamlined single window clearance process, Captain Kumar suggested that there was still significant room for improvement. He recommended that GIFT City either establish its own ship registry infrastructure or host an office for the Directorate General of Shipping to expedite regulatory processes, similar to international practices.
