India's International Financial Services Centres Authority (IFSCA) has issued a public consultation paper proposing to specify oilfield equipment so that operating leases, including hybrids of operating and financial lease, can be undertaken as a financial product under the IFSCA Act, 2019. Under the IFSCA (Finance Company) Regulations, operating lease of products or equipment specified by the Authority is treated as a non-core activity for finance companies, with the power to specify items derived from a Government of India notification. IFSCA has previously specified ships, aircraft ground support equipment, aircraft flight simulators and aviation training simulation devices, and noted that as of 31 December 2024 it had registered 30 aircraft operating lease entities and 15 ship leasing entities, with aircraft lessors having leased 196 assets (55% annual growth) and ship leasing assets increasing to 13 (tripling over one year). The consultation proposes adopting the definition of oilfield equipment from a list of relevant goods in a Goods and Services Tax notification linked to concessional tax treatment for supplies to exploration and production, covering equipment used in both onshore and offshore operations.
India International Financial Services Centres Authority 2025-03-07
India's International Financial Services Centres Authority consults on enabling oilfield equipment operating and hybrid leases as a financial product
India's International Financial Services Centres Authority (IFSCA) proposes including oilfield equipment in operating leases as a financial product under the IFSCA Act, 2019. This follows specifications for ships and aircraft-related equipment, with significant growth in registered leasing entities. The proposal suggests using the oilfield equipment definition from a Goods and Services Tax notification for concessional tax treatment.