Centre exempts GIFT city IFSC units from DGMA licence for leasing foreign vessels

The Centre has exempted GIFT City-based International Financial Services Centre entities from obtaining DGMA licences to lease foreign vessels. The move under the Coastal Shipping Act, 2025 aims to ease vessel chartering and strengthen India's maritime and international financial services ecosystem

New Delhi: The shipping ministry has allowed entities operating out of tax-free International Financial Services Centre at the Gujarat International Finance Tec-City (GIFT), Gandhinagar, to lease foreign vessels without taking permission from the Directorate General of Maritime Administration (DGMA).

The ministry in a gazette notification said, “In pursuance of Section 37 of the Coastal Shipping Act, 2025 (20 of 2025), the central government hereby exempts foreign vessels chartered by a unit set up in the International Financial Services Centre at the Gujarat International Finance Tec-City (GIFT), Gandhinagar, Gujarat from the requirement of a licence under Section 11 of the said Act.”

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Earlier, foreign flag ships were not allowed to engage in coasting trade in India’s waters without licence granted by DGMA.

The Coastal Shipping Act 2025, which deals with licensing of ships, has come under flak for hampering the ability of Indian entities engaged in commodity trading to charter foreign flag ships exclusively for overseas runs.