IndiGo intends to open a location at IFS Gift City to lease planes on a financial basis after Air India. The business stated that it plans to invest 30 crore.
Details on IndiGo will establish a unit in IFSC Gift City after Air India
According to the business, this company will be established pending permissions. “Issuing corporate guarantees in an amount not to exceed $996 million (or an equivalent amount in Indian rupees or any other currency) to secure the payment obligations of the aforesaid wholly-owned subsidiaries.” The business went on to say that this will be a wholly-owned subsidiary in Gift City, Gujarat, which is being created by the Indian government as a centre for international financial services.
The company stated that it will make an investment of up to 30 crore rupees in one or more tranches using equity, quasi-equity, optionally convertible preference shares, optionally convertible loan instruments, or any combination of these.
Taking lessons from Dublin, IFSC Gift City offers a number of incentives, such as tax advantages from business profits for ten years, a lack of capital gains tax, a lack of stamp duty, and a lack of GST on transactions made through the corporation, among others. For the past two and a half years, the government has been attempting to persuade aviation industry firms to open offices in Gift City.
According to Businessline, Air India was the first commercial airline to establish a leasing facility at Gujarat’s IFSC Gift City. According to sources, the six A350s that will be added to the fleet of the Tata-owned airline would be leased from the aforementioned leasing company, AI Fleet Services IFSC Ltd. 7,253 crore is the projected project cost.
