Sagarmala Finance Corporation Limited (SMFCL) recently cleared a major funding push for India’s ports and coastal logistics, approving a borrowing limit of Rs 25,000 crore, with Rs 8,000 crore earmarked for the current financial year.
The Mini-Ratna CPSE under the Ministry of Ports, Shipping and Waterways will tap banks, financial institutions and bond markets to raise the money, positioning itself as India’s first dedicated maritime non-banking finance company (NBFC) focused on the entire sea-linked value chain.
At its Annual General Meeting last week, SMFCL’s board endorsed what it described as a “forward-looking roadmap” to strengthen the maritime financing ecosystem, enabling the corporation to commence lending operations shortly.
The financing framework covers ports, port connectivity, port-led industrialisation, coastal community development, coastal shipping and inland waterways, with a special emphasis on vessel financing and shipbuilding support.
This aligns closely with flagship programmes such as Sagarmala and PM Gati Shakti, which aim to lower logistics costs and boost multimodal connectivity across India.
SMFCL is in talks with leading rating agencies and, backed by a “positive sector outlook and a robust project pipeline,” expects to secure top-tier credit ratings that will help it borrow at competitive rates.
Once operational, it plans to offer customised loan products to both government and private entities—ranging from short, medium, and long-term loans to instruments that smooth cash-flow gaps and provide non-fund-based support like guarantees.
The corporation also aims to play “a pivotal role in advancing India’s shipbuilding capabilities,” supporting the country’s aspiration to emerge as a serious player in the global shipbuilding market.
The financing push came barely a month after SMFCL’s recent MoU with Unifeeder, a DP World company, to advance green coastal and shortsea shipping in India, where SMFCL’s Maritime Development Fund will be used to design low-cost, climate-aligned funding models for shifting cargo from road to sea.