FAQs

Gujarat Maritime Cluster is India’s first services based maritime cluster project, conceptualized by Government of Gujarat in line with the vision of the Hon’ble Prime Minister Shri Narendra Modi and is also accepted under the Sagarmala program of Ministry of Shipping. Gujarat Maritime Cluster is intended to be an agglomeration of firms, institutions, business and other industry players in the maritime / shipping sector, geographically located close to each other and thereby creating a positive synergy in their business activities.

Gujarat occupies the top position in the list of 21 states and UTs with most investment potential, according to a report by think-tank NCAER. Gujarat is amongst the leading states in crucial areas for ease of doing business like setting up a business, facilitation through single window system, land allotment, registering property, paying taxes amongst others.

Gujarat is gifted with more than 1600 Kms of coastline and equipped with highest number of  operational and commercial cargo ports, and it contributes to about 40% of Indian maritime trade and 71% of cargo handled by non-major ports, enabled by proactive policies including ease of port privatization and adoption of integrated port led development model. Recognizing the potential of the State as a centre for the maritime industry, GMC has been formulated in Gujarat to realize the vision of setting up India’s first services based maritime cluster.

It is located in Gujarat International Finance Tec-City (GIFT) at Gandhinagar, the capital city of Gujarat State. The nearest urban centres to GMC are Gandhinagar (6 km) and Ahmedabad (12 km). GMC is located at a distance of just 12 km from Ahmedabad International Airport and is also accessible from National Highway 8. It is situated along the Delhi Mumbai Industrial Corridor (DMIC).

• Gujarat Maritime Board (GMB): Developer, administrator and regulator of the Gujarat’s non-major ports and marine activities.
• Gujarat Port Infrastructure & Development Co. Ltd.  (GPIDCL): A fully owned subsidiary of the Gujarat Maritime Board.

GMC being a services-based maritime cluster, access to port facilities would not affect its development. Landlocked countries like Luxembourg and Austria have demonstrated the non-dependency on sea access in developing world class maritime clusters. Moreover, all the major ports of Gujarat are within a 400 km radius from GMC, well connected through robust road infrastructure. Furthermore, GMC being the first of its kind in the country, will have the early mover advantage in establishing a service based maritime cluster.

Companies can be a part of multiple clusters across geographies. An entity could avail the benefits of GMC as per its eligibility.

The decision of shifting to GMC has to be considered in light of the various advantages of the project and incentives proposed, the long-term benefits accrued which might outweigh the investment already incurred by the participant elsewhere.

• Operational and Marketing Benefits:
  • Provide a fillip for business opportunities to Cluster members, with presence of asset owners and service providers (Easy access to professional services)
  • Business development and alliance support for strategic partnerships
  • Provide a unique opportunity to global maritime service providers to access Indian clients in a more secure and professional manner
  • Reduce dependence on offshore firms for maritime services
  • Greater bargaining and lobbying power, tacit knowledge
  • Decrease counter party risk for global operators dealing with Indian entities, as the Gujarat Maritime Cluster is expected to govern conduct and performance of its members
  • Presence of the foreign ship-owners and other service providers would provide critical capital, skillset and enhance the reach of the maritime cluster
  • Activities like seminars, training courses along with arrangement of brokerage meets, vendor meetings, trainee programmes, university collaborations etc.
  • Support in marketing and visibility exercises of the sub-brands (cluster participants) along with the Master brand (GMC)
  • Access to world class infrastructure in GIFT City

• Support in Ease of Doing Business:
  • Easy access to intended Government regulatory authorities in Cluster
  • Support in quick approvals/clearances for establishment and operations
  • Presence of Singapore International Arbitration Centre (SIAC) in GIFT shall facilitate the dispute resolution for the cluster members
  • GMC envisages to host an international alternate dispute resolution centre focused on maritime / shipping

• Transaction Benefits:
  • World class banking facility including quick remittance and receipt of funds from overseas, with facility to hedge the rupee with various currencies
  • Presence of major national and international banks in GIFT, thereby reducing the banking hassles.

• Tax Benefits:
  • Direct and Indirect Tax Benefits entailed with GIFT SEZ and GIFT IFSC for eligible players (depending on their nature of business)

Moreover, GMC’s service offerings / benefits are not only limited to global networking opportunities to advertisements and tax rebates, but to also promote skill development, foster innovation and attract new technology.

GMC’s holistic approach envisages to help boost job creation and encourage youngsters in taking up Maritime as an enriching career option.

• Regulators / Government Agencies (Central & State), to ensure Ease of Doing Business for the cluster participants
• Maritime Industry / Trade Associations
• Shipping Industry Players, such as Ship Owners, Ship Operators / Leasing Firms, Ship Management, Ship Charterers, Shipping Agents, Shipping Lines, Freight Forwarders, Customs Brokers, Ship Management, Multimodal Transport Operators, Stevedores, Shipping Agents, Port Operators, etc.
• Intermediate Services Providers, such as Shipping Finance, Marine Insurance, Maritime Arbitrators, Maritime Law Firms, Maritime Information Technology (IT) firms, Maritime Consultants, P&I Clubs, etc.
• Support Services Providers, such as Maritime Education Institutes, Maritime Event Managers / Publishing Houses, Manning Agencies, Media, etc.

The entity and/or individual should be associated with maritime sector and/or trade. However, the final decision to accord membership lies with the GPIDCL / GMC management.

• For Virtual Membership:
  • Interested parties can fill the prescribed registration form by selecting the “Virtual Membership” option on Gujarat Maritime Cluster’s website and pay the applicable registration/membership fees online.
• For Physical Space:
  • Interested parties can fill the prescribed registration form by selecting the “Full / Physical Membership” option on Gujarat Maritime Cluster’s website and pay the applicable registration/membership fees online.
  • Concurrently, GPIDCL / GMC will facilitate meetings between the interested parties and GIFTCL / Developer(s) in GIFT City to secure required office space in pertinent business platform (i.e. DTA, SEZ or IFSC) based on their eligibility.
  • The applicant shall, thereafter, finalise lease / outright purchase deal with GIFTCL / Developer(s), and secure their office space in GIFT City after duly fulfilling all prescribed procedural / payment formalities with GIFTCL / Developer(s).

GMC Membership could be renewed annually by making the payment of prescribed rates online on its website or by visiting GPIDCL / GMC’s Administrative Office.

No entity will be eligible to be a participant of GMC or avail the associated benefits, unless the proposal is routed through GPIDCL / Gujarat Maritime Cluster.

GMC is not envisaged as a contiguous parcel of land. Entities setting up anywhere, based on their eligibility, within the geographical boundaries of GIFT City are eligible to be part of GMC.

• Data Centre: A state of the art certified TIER IV Green Data Centre with a capacity of 900 Racks is up and running
• Automated Waste Collection System (AWCS): No human intervention which also reduces operational cost. Provides clean environment for the people working in the City.
• Water: Drinkable (potable) water from any tap; Sustainable model through zero discharge concept
• Power: Supply from two different grids ensures 99.9% power reliability, which means minimal / negligible power outage
• ICT: GIFT City is connected with a fault tolerant optical fibre ring Infrastructure. The connectivity in GIFT City is provided by four major telecommunication service providers.
• India’s 1^st District Cooling System: Modular plant along with state-of-the-art TES tank; 30-40% reduction in operational cost. No capital cost to be incurred for setting up chillers in the tower
• India’s 1^st Utility Tunnel: All the utility services except gas and sewerage from plants to various buildings will be routed through utility tunnel only.

GIFT City has three distinct physically demarcated sections: IFSC Zone, Services SEZ Zone and Domestic Tariff Area.

The IFSC zone is central to the city, with members requiring approval from SEBI / IRDA / RBI. IFSC members need to be either banks/Financial institutions including NBFCs or insurance providers. They can only carry out ‘offshore transactions’ from IFSC / GIFT city, thus negating the need for overseas ‘offshore’ offices.

The services SEZ zone is for any company that is providing services to overseas clients and has a net positive USD inflow. The development commissioner for Kandla SEZ also presides for GIFT SEZ for approvals.

The domestic section of GIFT city is for those dealing in local economy / currency and providing services to member companies in IFSC/SEZ or those who wish to avail the infrastructure which GIFT offers.

GIFT City has successfully attracted banks, financial institutions and other players from sectors like Insurance and Re-insurance companies in the IFSC zone. An overseas trading exchange managed by BSE and Alternative Investment Funds (AIF) have also developed in IFSC zone. Globally, AIF funds provide substantial capital to international shipping & commodity trading.

An IFSC is a jurisdiction that provides financial services to non-residents and residents, to the extent permissible under the current regulations, in any currency except Indian Rupee.

GIFT SEZ is the only place in India which is designated as International Financial Services Centre (IFSC).

The following entities can set up operation in IFSC

• Banking Sector – Regulated by Reserve Bank of India (RBI)
  • Indian banks (viz. banks in the public sector and the private sector authorised to deal in foreign exchange)
  • Foreign banks already having presence in India
• Insurance Sector – Regulated by Insurance Regulatory and Development Authority of India (IRDAI)
  • Indian Insurer
  • Indian Reinsurer
  • Indian Broker
  • Foreign Insurer
  • Foreign Reinsurer
• Capital Market – Regulated by Securities & Exchange Board of India (SEBI)
  • Stock Exchanges / Commodity Exchanges
  • Clearing Corporation
  • Depository
  • Broker
  • Investment Adviser
  • Portfolio Manager
  • Alternate Investment Fund
  • Mutual Fund
  • Any other intermediary permitted by SEBI

In IFSC, all the transactions should be in foreign currency (other than Rupee). However, IFSC units can carry out administrative and statutory expenses in Indian Rupees.

The maritime sector firms engaged in activities such as (but not limited to), Ship Owning, Ship Finance, Marine Insurance, etc. could set up operations in GIFT IFSC.

Competitive Tax Regime:

• Commodity Transaction Tax (CTT) waived off
• Security Transaction Tax (STT) waived off
• Dividend Distribution Tax (DDT) waived off
• Goods and Service Tax (GST) waived off
• Long Term Capital Gain (LTCG) waived off
• Short Term Capital Gain (STCG) waived off
• Withholding Tax waived off
• 10 Year Tax Holiday
• Minimum Alternate Tax (MAT) payable at 9% of Book Profit
• GoG has also exempted Stamp Duty for entities having registered office in GIFT City for capital market activities

The following points describe the procedure to establish a unit in GIFT- IFSC:

• Obtain Letter of Intent (“LOI”) from GIFT SEZ Ltd. for securing the premises on lease
• Application in the prescribed Form F to be filed with the jurisdictional Development Commissioner, (Kandla SEZ) and GIFT SEZ along with copy of project report and other details / information (in quintuplicate)
• The Development Commissioner, GIFT SEZ shall scrutinize the proposal of the unit and shall place the same before Unit Approval Committee for their consideration
• Unit Approval Committee shall approve or approve with modifications or reject the proposal within 15 days of its receipt
• The Development Commissioner, GIFT SEZ shall issue “Letter of Approval” for setting up unit subject to approval by the relevant regulator.
• SEZ unit will take approval from RBI, SEBI or IRDA for setting up IFSC unit for carrying out banking, capital market or insurance related activities in GIFT SEZ- IFSC
• SEZ unit shall be required to confirm its acceptance with the terms and conditions of LOA to the Development Commissioner, GIFT SEZ within 45 days of receipt of LOA
• SEZ unit shall be required to enter into a lease agreement with GIFT SEZ Limited and copy of registered lease deed shall be required to be submitted with the office of the Development Commissioner, GIFT SEZ within 6 months of receipt of LOA
• The unit can then operate and avail all the benefits /exemptions/concessions as a unit in GIFT SEZ – IFSC

GPIDCL / GMC will facilitate eligible participants in securing office space in GIFT IFSC.

The entities engaged in the following activities can be eligible to set up operation in GIFT SEZ

• Financial Services
• Capital Market and Trading
• IT Services
• ITeS/ BPO Services

The maritime sector firms engaged in activities such as (but not limited to), Ship / Bunker Broking, Insurance Brokerage, Maritime Law Firms, Maritime Consultants, etc. could set up operations in GIFT SEZ.

The following points describe the procedure to establish a unit in GIFT- SEZ

• Submission of Interest Letter/Mail by the organization for taking up space at GIFT SEZ for setting up unit in GIFT SEZ as per the prescribed format.
• GIFT SEZ will give the Proposal to the applying organization for taking up space in GIFT SEZ.
• The organization to provide the confirmation/acceptance for the Proposal sent by GIFT SEZ.
• Post confirmation, GIFT SEZ to issue Provisional Letter of Allotment (PLOA) to the organization for providing office space for setting up Unit in GIFT SEZ.
• Organization to submit application (Form-F) to Development Commissioner, KASEZ for taking approval for setting up the Unit in GIFT SEZ along with the relevant documents including PLOA issued by GIFT SEZ.
• On approvals from DC, KASEZ, GIFT SEZ to issue Final Letter of Allotment for allocation of space in GIFT SEZ for carrying out the approved operations.
• The approved Units shall have to execute lease deed/Leave and License with the Developer or Co–developer as the case may be for the allotted space.

GPIDCL / GMC will facilitate eligible participants in securing office space in GIFT SEZ.

• Income Tax Benefits
  • New SEZ occupiers are eligible to receive both direct and indirect tax benefits, only if their Letter of Approval (LOA) is issued before end of March 2020. All new SEZ occupiers getting their LOA beginning 1^st April 2020 will not be eligible to receive direct tax benefits. However, the sunset clause will not impact their indirect taxes, and they will continue to receive benefits such as exemptions on GST and SEIS incentives (on eligible services), as long as they are operational
  • Minimum Alternate Tax (MAT) payable at 15%
• Indirect Tax Benefits
  • Exemption from the payment of Customs duties and/or GST.
  • The SEZ unit is free to make supplies to a Domestic Tariff Area unit, based on a payment of IGST, where the payment is received in foreign exchange; GST applicable on services provided to DTA