Infra status for large ships seen boosting financing avenues, shipbuilding

The Finance Ministry’s decision to grant infrastructure status to large Indian-owned and flagged ships is set to unlock new financing channels for the maritime industry, allowing fleet owners to raise funds through Infrastructure Investment Trusts (InvITs) and recycle capital for new vessel acquisitions, it is learnt. 

According to a recent notification issued by the Finance Ministry, Indian-owned and flagged commercial vessels with a gross tonnage (GT) of 10,000 and above, or Indian-built, owned and flagged ships of 1,500 GT or more, will now be treated as infrastructure assets. This is seen as an opportunity to bring ships under the InvIT framework and monetise vessels owned by various companies to fund the next round of shipbuilding and ownership, as per the reports. 

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