Alphard Maritime Group has announced plans to set up a $500 million shipping fund in Gujarat's International Finance Tec-City (GIFT City) to boost India's shipping tonnage. Speaking at the 'Global Ports and Shipping Summit' in Mumbai, Captain Alok Kumar, Chairman and Promoter of Alphard Maritime, highlighted the fund's role in supporting Indian fleet owners.

Under the initiative, Alphard will contribute Rs5 billion, while partners will provide another Rs45 billion, with the aim of helping Indian fleet owners acquire assets worth between $10 and 20 million. “Once operational, the fund will enable Indian shipping tonnage,” Captain Alok said.

GIFT City, India's first International Financial Services Center (IFSC), has become a hub for shipping companies to explore ship leasing opportunities. Alphard is one of dozens of companies using this platform to facilitate shipbuilding and financing activities.

The fund is being developed in collaboration with PwC and is supported by European lenders that already do business with Alphard. Captain Alok also urged the government to establish a special shipping fund in GIFT City to further attract investments.

He highlighted some regulatory challenges and suggested that GIFT City should have its own infrastructure for ship registration and certification. As an alternative, he suggested setting up a local office of the Directorate General of Shipping to expedite the processes, noting that current approvals in India can take up to a month, compared to just two hours in international legal areas.

Furthermore, Captain Alok recommended that state-owned companies such as ONGC should offer long-term contracts (10-15 years) for offshore vessels, which would incentivize fleet owners to build vessels domestically despite higher costs due to the Goods and Services Tax (GST) implications .

Alphard Maritime considers GIFT City a strategic location for vessel leasing due to various tax exemptions and incentives. “It makes economic sense to come through GIFT City, and once transactions resume, the initial issues will be resolved,” he concluded.