The corporation has outlined a comprehensive financing framework to support the entire maritime value chain, with particular emphasis on vessel financing.
In a major boost to India’s maritime financing ecosystem, the board of Sagarmala Finance Corp. Ltd (SMFCL) has approved an overall borrowing plan of ₹250 billion ($3 billion) to support infrastructure development across the maritime value chain. The decision was formalised at the maritime non-banking financial company (NBFC)’s annual general meeting held in New Delhi on Saturday.
Of the total borrowing plan, ₹80 billion ($960 million) has been earmarked for the current financial year.
“To meet this requirement, SMFCL will mobilise funds through leading banks, financial institutions and bond issuances in accordance with its resource mobilisation plan, enabling the corporation to commence lending operations shortly,” the Ministry of Ports, Shipping and Waterways said in a statement.
SMFCL is currently in discussions with major financial rating agencies. With a positive sector outlook and a robust project pipeline, the corporation is expected to secure apex-scale ratings, enhancing investor confidence and helping optimise interest costs.
In the Union Budget 2025-26, the Government of India announced the creation of a Maritime Development Fund with a corpus of ₹3 trillion ($36 billion) to support long‑term financing for shipbuilding, port infrastructure, and blue water logistics. Complementary measures included a revamped Shipbuilding Financial Assistance Policy, customs duty exemptions, and credit notes for shipbreaking to promote circular economy practices. SMFCL’s borrowing plan has been approved against this broader financing framework.
As part of its strategic vision, SMFCL has outlined a comprehensive financing framework to support the entire maritime value chain. This includes funding for ports, port connectivity projects, port-led industrialisation, coastal community development, coastal shipping and inland waterways, with particular emphasis on vessel financing.
The corporation is also poised to play a pivotal role in advancing India’s shipbuilding capabilities, contributing to the nation’s ambition of establishing a strong position in the global shipbuilding arena.
To meet diverse requirements across the sector, SMFCL will offer customised loan products to eligible government and private sector entities. These will cover short-, medium-, and long-term financing, along with support for cash-flow mismatches and non-fund-based instruments.
Established in June 2025, SMFCL was formerly known as Sagarmala Development Co. Ltd and is now India’s first maritime sector-specific NBFC. Its mandate includes bridging financial gaps in the maritime sector, facilitating investments, and offering tailored financial products to port authorities, shipping companies, MSMEs, startups, and maritime educational institutions.