Maritime-focused non-banking financial company Sagarmala Finance Corporation Ltd (SMFCL) has made a significant entry into the maritime lending space with its board approving loans worth ₹4,300.00 crore. This development marks a crucial milestone for the specialized NBFC as it begins operations in addressing the sector's long-standing financing requirements.

Major Loan Allocations

The approved loan portfolio demonstrates SMFCL's commitment to supporting diverse maritime infrastructure projects across the sector.

The funding to Goa Shipyard specifically targets supporting dredging capacity and strengthening indigenous shipbuilding capabilities, aligning with the government's focus on domestic maritime manufacturing.

Institutional Foundation and Leadership

SMFCL was inaugurated in June by Union Minister for Ports, Shipping and Waterways (MoPSW) Sarbananda Sonowal. The NBFC has been established with the specific mandate to bridge long-standing financing gaps and deliver sector-specific financial solutions to ports, MSMEs, startups, and maritime institutions.

"SMFCL's entry into lending marks an important step in strengthening maritime infrastructure and enterprise financing," said Sonowal. He emphasized that India's maritime sector has witnessed unprecedented policy clarity, institutional reform and investor confidence, creating an ecosystem that enables specialized institutions like SMFCL to catalyze development across the blue economy.

Aggressive Growth Strategy

The loan approvals follow an ambitious market roadmap cleared at SMFCL's annual general meeting (AGM), where the board established significant financial targets for expansion.

With the latest sanctions scheduled for disbursement within the ongoing fiscal year, SMFCL is positioning itself to emerge as a dedicated and credible financier for the maritime sector. Major credit rating agencies are expected to assign a rating shortly, which is likely to optimize borrowing costs and support the scaling up of lending operations.

Maritime Development Fund Framework

SMFCL's expansion strategy receives strong institutional support from the Ministry of Ports, Shipping and Waterways, which has designated the corporation as the nodal agency for the Maritime Development Fund (MDF).

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. Additionally, SMFCL will act as the nodal agency to channelize the Interest Incentivisation Fund, significantly expanding its scope of funding support across maritime segments.

Future Opportunities and Service Offerings

The forthcoming notification of guidelines for the Shipbuilding Financial Assistance Scheme, with an outlay of ₹44,700.00 crore, is expected to open new avenues for investment and collaboration, particularly in shipbuilding and allied industries. This development will further strengthen the domestic maritime manufacturing ecosystem.

SMFCL will offer comprehensive financial products to eligible government and private sector entities operating across the entire maritime value chain. The corporation's service portfolio includes:

• Short-, medium- and long-term loans
• Solutions to address cash-flow mismatches
• Balance-sheet financing
• Non-fund-based products designed for maritime projects and enterprises

These tailored financial products are specifically designed to meet the unique needs of maritime projects and enterprises, positioning SMFCL as a specialized financial partner for the sector's growth and development.

Sagarmala Finance Corporation Limited (SMFCL) has marked its strategic entry into maritime financing with the board's approval of ₹4,300 crore in loans scheduled for disbursement during the current fiscal year. This significant move positions the corporation as a key player in India's maritime financing landscape, with ambitious growth targets and strong government backing.

Strategic Growth Targets and Financial Projections

The corporation has outlined clear expansion plans following this initial loan sanction. SMFCL aims to build its loan book size to ₹8,000 crore by FY 2025-26, demonstrating its commitment to strengthening its position in maritime financing. The company expects rating assignments from major rating agencies shortly, which should help leverage borrowing costs and improve its financial positioning.

Government Support and Nodal Agency Role

SMFCL's ambitious strategy receives strong backing from the Ministry of Ports, Shipping and Waterways, which has designated the corporation as the nodal agency for establishing and coordinating the flagship Maritime Development Fund worth ₹25,000 crore. This substantial fund comprises two key components that will significantly enhance SMFCL's operational scope.

The Maritime Development Fund structure includes:

• Maritime Investment Fund (MIF): ₹20,000 crore corpus
• Interest Incentivization Fund (IIF): ₹5,000 crore corpus

SMFCL will hold and manage the Government of India's contribution to the Alternative Investment Fund established for MIF in a fiduciary capacity. Additionally, as the nodal agency for channelizing the ₹5,000 crore IIF, the corporation will expand its funding scope within the maritime sector.

Comprehensive Loan Product Portfolio

The corporation plans to offer tailored loan products to eligible government and private sector entities across the entire maritime sector spectrum. SMFCL's lending portfolio will encompass various financing solutions designed to meet diverse sector requirements.

Additional Investment Opportunities

The upcoming notification of guidelines for the Shipbuilding Financing Assistance Scheme worth ₹44,700 crore will create new investment and collaboration avenues for SMFCL. This scheme represents another significant opportunity for the corporation to expand its maritime financing operations and establish strategic partnerships within the shipbuilding sector.

Company Background and Regulatory Status

SMFCL, formerly known as Sagarmala Development Company Limited, holds the distinction of being India's first maritime sector-specific Non-Banking Financial Company. The corporation achieved formal NBFC registration with the Reserve Bank of India on June 19, 2025, marking a crucial regulatory milestone.

Operating under the Ministry of Ports, Shipping and Waterways, SMFCL's primary mission focuses on bridging financial gaps in the maritime sector and facilitating targeted investments. The corporation aims to serve diverse stakeholders including port authorities, shipping companies, MSMEs, startups, and maritime educational institutions through sector-focused financial products.