Sagarmala Finance Corporation Limited (SMFCL), India’s first maritime-focused Non-Banking Financial Company (NBFC), has formally commenced lending operations, marking a major milestone in the creation of a dedicated maritime finance ecosystem in India.
At its 51st Board Meeting, SMFCL approved loan sanctions of around ₹4,300 crore, officially entering the maritime lending space in line with its Board-approved strategy.
Key Highlights
- First tranche of ₹4,300 crore in loan sanctions approved.
- Lending operations initiated after approval of an aggressive market roadmap at the AGM.
- Overall borrowing limit: ₹25,000 crore.
- Lending target for current financial year: ₹8,000 crore.
- Target loan book: ₹8,000 crore in FY 2025-26.
- Sanctioned loans scheduled for disbursement within the ongoing fiscal year.
- Positions SMFCL as a dedicated and credible financier for India’s maritime sector.
Sector-wise Allocation of Initial Sanctions
- ₹4,000 crore earmarked for a Greenfield Port Project, reinforcing the Centre’s push for port-led development.
- Dredging Corporation of India: ₹150 crore
- Enhances dredging capacity and navigational efficiency.
- Goa Shipyard Limited: ₹110 crore
- Supports indigenous shipbuilding and defence-maritime manufacturing.
Sagarmala Finance Corporation Limited (SMFCL)
- Inaugurated: 26 June 2025
- Inaugurated by: Sarbananda Sonowal
- Administrative Ministry: Ministry of Ports, Shipping and Waterways (MoPSW)
- Status: Schedule-B, Mini Ratna Category-I CPSE
- Regulator: Registered with RBI as an NBFC
- Focus: Exclusive financing for the maritime sector
SMFCL was created to bridge long-standing financing gaps in ports, shipping, dredging, shipbuilding, maritime MSMEs and startups, aligned with Maritime Amrit Kaal Vision 2047 and India’s Blue Economy goals.
Evolution of SMFCL
- Originally incorporated: 31 August 2016
- As Sagarmala Development Company Limited
- Purpose: Support implementation of the Sagarmala Programme
- Renamed: June 2025 as Sagarmala Finance Corporation Limited
- Transition: From project facilitation to full-fledged maritime NBFC
About Sagarmala Programme
- Flagship initiative for:
- Port-led development
- Logistics efficiency
- Coastal and inland waterway connectivity
- Shipbuilding and maritime services
- Aims to reduce logistics costs and enhance India’s trade competitiveness.
SMFCL’s Expansion & Funding Strategy
Loan Book Target
- ₹8,000 crore in FY 2025-26.
Maritime Development Fund (MDF)
SMFCL has been designated as the nodal agency for the Maritime Development Fund (MDF) with a total corpus of ₹25,000 crore:
- Maritime Investment Fund: ₹20,000 crore
- Interest Incentivisation Fund: ₹5,000 crore
Role of SMFCL:
- Holds and manages Government of India’s contribution to the Maritime Investment Fund in a fiduciary capacity.
- Channels interest incentives to maritime projects across segments.
Shipbuilding Financial Assistance Scheme
- Proposed outlay: ₹44,700 crore.
- Guidelines to be notified soon.
- Expected impact:
- Boost to shipbuilding and allied industries.
- Strengthening domestic maritime manufacturing ecosystem.
- Higher private and institutional investment.
Financial Products Offered by SMFCL
- Short-, medium- and long-term loans
- Cash-flow mismatch solutions
- Balance-sheet financing
- Non-fund-based financial products
- Tailored financing across the entire maritime value chain
Eligible borrowers include:
- Port authorities
- Shipping companies
- Dredging firms
- Shipyards
- MSMEs and startups
- Public and private sector entities
Strategic Significance
- Establishes a sector-specific institutional finance backbone for maritime development.
- Accelerates:
- Port infrastructure creation
- Indigenous shipbuilding
- Dredging and logistics efficiency
- Supports India’s ambition to become a global maritime power.
- Deepens access to long-term finance for the Blue Economy.
- Complements national priorities under:
- Sagarmala Programme
- Make in India
- Aatmanirbhar Bharat
- Maritime Amrit Kaal Vision 2047