Shipping ministry removes DGMA licence requirement for GIFT City units

The government has allowed entities operating from the tax-free International Financial Services Centre (IFSC) at the Gujarat International Finance Tec-City (GIFT City) in Gandhinagar to charter foreign vessels without obtaining permission from the Directorate General of Maritime Administration (DGMA).

The shipping ministry said in a gazette notification that the exemption has been granted under the Coastal Shipping Act, 2025.

The 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.”

Earlier, foreign-flagged ships were not permitted to engage in coasting trade in Indian waters without a licence issued by the DGMA.

The Coastal Shipping Act 2025, which governs the licensing of ships, has faced criticism for hampering the ability of Indian entities engaged in commodity trading to charter foreign-flagged vessels exclusively for overseas operations.

The government said on Friday that units in GIFT City will be exempt from the licensing requirement for chartering foreign vessels for export and import cargo movement and international trade operations.

GIFT City is being developed in prime minister Narendra Modi’s home state of Gujarat and offers easier tax rules and regulations. It is being promoted by the government as a financial centre to rival Singapore and Dubai.

The shipping ministry said the exemption is intended to simplify the regulatory framework governing the chartering of foreign vessels for international shipping operations.

It said the move is expected to promote maritime leasing, ship financing and ship-owning activities through GIFT City.

Reuters reported in May that telecom operator Bharti Airtel, US-based Genpact and auto parts giant ZF Friedrichshafen were among the companies setting up treasury operations in GIFT City.