Sagarmala Finance Corporation Ltd (SMFCL), a maritime-focused non-banking financial company, has taken a decisive step into project financing by approving loans totalling about Rs 4,300 crore. The board sanctioned the package this week, with roughly Rs 4,000 crore earmarked for a greenfield port project and smaller tranches allocated to state-owned entities.
Dredging Corporation of India received Rs 150 crore, while Goa Shipyard secured Rs 110 crore. Funding to Goa Shipyard is intended to bolster dredging capacity and support indigenous shipbuilding capabilities, officials said. The sanctions are scheduled for disbursement within the current fiscal year.
India maritime lending gains momentum
The move follows an aggressive market roadmap approved at SMFCL’s annual general meeting, where the board set an overall borrowing limit of Rs 25,000 crore and a lending target of Rs 8,000 crore for the current financial year. SMFCL is targeting a loan book of Rs 8,000 crore in 2025-26, reflecting its ambition to become a dedicated financier for the maritime sector.
Inaugurated in June by the Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, SMFCL was established to address long-standing financing gaps and to deliver sector-specific financial solutions to ports, micro, small and medium enterprises, startups and other maritime institutions. Sonowal said the corporation’s entry into lending will strengthen maritime infrastructure and enterprise financing.
SMFCL’s expansion strategy is underpinned by institutional support from the Ministry of Ports, Shipping and Waterways. The ministry has designated the corporation as the nodal agency for the Maritime Development Fund (MDF), a Rs 25,000 crore corpus that includes a Rs 20,000 crore Maritime Investment Fund and a Rs 5,000 crore Interest Incentivisation Fund. Under the approved framework, SMFCL will hold and manage the central government’s contribution to the Alternative Investment Fund established for the Maritime Investment Fund in a fiduciary capacity. It will also channel the Interest Incentivisation Fund to widen its funding support across maritime segments.
Major credit rating agencies are expected to assign ratings to SMFCL shortly, a development likely to optimise borrowing costs and support the scaling up of lending operations. Officials say improved ratings would make it cheaper for the NBFC to raise funds and pass on competitive rates to borrowers in the maritime value chain.
Policy-makers are also preparing to notify guidelines for the Shipbuilding Financial Assistance Scheme, which carries an outlay of Rs 44,700 crore. The scheme is expected to stimulate investment in shipbuilding and allied industries, reinforcing domestic manufacturing and employment in maritime sectors.
SMFCL plans to offer a range of tailored financial products to eligible government and private sector entities across the maritime value chain. These will include short, medium and long-term loans, solutions to address cash-flow mismatches, balance-sheet financing and non-fund-based products designed to meet the specific needs of maritime projects and enterprises.
By combining targeted lending with stewardship of the MDF and collaboration with existing public-sector entities, SMFCL aims to catalyse growth across ports, dredging, shipbuilding and related services. The corporation’s initial sanctions signal a shift towards specialised financing that industry stakeholders hope will accelerate infrastructure delivery and support India’s broader ambitions in the blue economy.
Key Takeaways:
- SMFCL approves Rs 4,300 crore in loans, signalling a major step in India maritime lending.
- About Rs 4,000 crore earmarked for a greenfield port; DCI and Goa Shipyard receive Rs 150 crore and Rs 110 crore.
- SMFCL aims for an Rs 8,000 crore loan book in 2025-26 backed by a Rs 25,000 crore Maritime Development Fund.
