Cypriot shipping firms announce ₹10,000 cr investment in Indian shipping

Largest FDI in Indian shipping sector, say companies

A month after Prime Minister Narendra Modi’s visit to Cyprus, two Cypriot shipping companies – Interorient Navigation and Danship and Partners – have announced a collaboration to invest Rs 10,000 crore in the Indian shipping sector.

 

“This investment of INR 10,000 crore is, by far, the largest-ever FDI (foreign direct investment) in the Indian shipping sector since this sector was opened to 100% FDI in 2005,” a joint statement by the companies said.

 

According to Daniel Gautam Chopra, who heads Danship and Partners, the investment will be used to increase India’s tonnage by procuring ships and registering them under the Indian flag.

 

 

“The eventual goal is to become the largest shipping operator in India,” Chopra told Business Standard. 

 

The joint statement said that strengthening maritime cooperation between India and Cyprus had been discussed during the Prime Minister's visit to Cyprus.

 

“During his visit, the Indian PM had formal discussions with the Hon’ble President of Cyprus, Mr. Nikos Christodoulides. A wide range of issues were deliberated in this meeting. Inter alia, strengthening cooperation between the two countries in the maritime domain was underscored. Incidentally, both India and Cyprus are major maritime nations and also have an Indo-Cyprus Maritime Cooperation Framework Agreement in place,” it said.

 

All the ships under this investment will be registered under the Indian flag, contributing significantly to India's national shipping tonnage. This will also provide employment for Indian cadets, trainees, and seafarers.

 

“The freight earned for carriage of Indian EXIM (export-import) trade will remain in the Indian economy,” the companies said.