With an estimated investment of ₹1,689 crore, Adani Ports and Special Economic Zone Ltd (APSEZ) has established a step-down subsidiary company, Poseidon Leasing IFSC Ltd, to operate within the GIFT SEZ in Gujarat. The entity has approched IFSC for setting up the unit.

Sources said this company will focus on ship leasing, including operating leases or financial leases of ships, ocean-going vessels, and their engines or other parts.

Poseidon has been set up through another subsidiary of APSEZ, Shanti Sagar International Dredging Ltd (SSIDL). The latter will hold 100 per cent in Poseidon. The company will have an authorised and paid up capital of ₹2.5 crore divided in 25,00,000 equity shares of ₹10 each, according to an earlier stock market notification.

“Names of three directors have been proposed,” those in the know said. Adani Enterprises is yet to respond to queries by businessline.

Adanis are also “actively growing” their network of ports and terminals in India. The ship leasing venture is expected to further strengthen their presence in the maritime sector.

Ship Leasing in Gift City

Setting up a ship leasing entity at Gift city allows Indian companies to transact in foreign currency. This enables Indian firms, who shifted overseas due to regulations and taxes, to come back to IFSC in India. Analysts believe that setting units in Gift City for ship leasing businesses is a positive move. Gift City provides exemptions and incentives designed to attract such companies.

Previously, Indian entities went to Dubai and Singapore to create a shipping venture, due to want of regulations and tax clarity in India.

Companies also get tax breaks when they set up leasing units at Gift City. Some of the tax breaks include income tax waiver for 10 continuous years out of the first 15, no input GST on services received from Indian or non-resident vendors, among other benefits.

Kolkata-based Ripley has already set up the Ripley Shipping India IFSC Pvt Ltd in December 2022. It also started ship leasing activities last year. MV Ripley Pride is a bulk carrier (Panamax) that was built in 2003 in Japan with a carrying capacity of approximately 76,858 deadweight tonne (DWT). Each year, an estimated $75 billion is paid for seaborne freight to foreign shipping companies; while the global charter hire market is pegged at $100 billion.

Reliance has set up a ship leasing arm at IFSC-Gift City with a total investment and expenses of ₹22,033 crore.