The International Financial Services Centres Authority (IFSCA) on March 07, 2025, seeks Public Consultation on Enabling Operating Lease Including Any Hybrid Of Operating And Financial Lease Of Oilfield Equipment As A Financial Product.
The objective of this consultation paper is to seek comments/views/suggestions from the public on a proposal for the Authority to specify “oilfield equipment”. Once specified, operating lease, including any hybrid of operating and financial lease, of ‘oilfield equipment’ shall be a financial product under section S.3(1)(d)(vi) of the IFSCA Act, 2019.
The oilfield equipment so leased out may be held by the financial institution in IFSC either on ownership basis or on lease-in-lease-out basis. The definition of the term “oilfield equipment” is proposed to be adopted from the list of relevant goods annexed to the table specified in the GST notification no. 03/2017-Central Tax (Rate) dated June 28, 2017 [Concessional CGST rate for supplies to Exploration and Production]. The list of oilfield equipment proposed to be enabled for leasing as under the draft notification, is with the intent of allowing its usage both for the purpose of onshore as well as offshore Oilfield operations’
After examining the stakeholder feedback on above mentioned point, if a case for doing so is found to exist, put in place the operational framework for enabling operating lease, including any hybrid of operating and financial lease, of oilfield equipment by a financial institution in IFSC.
Comments and suggestions are invited from the public on the following:
The draft notification as placed in Annex I includes the proposed definition of ‘oilfield equipment’ for onshore and offshore usage.
The comments may be sent by email to Mr. Sri Vishnucharan, Assistant Manager, at [email protected] with a copy to Ms. Riddhi Bhandari, General Manager at [email protected] with the subject line “Comments on the draft notification to enable operating lease including any hybrid of operating and financial lease of Oil Field Equipment in IFSC ‘, latest by March 28, 2025.
