Sagarmala Finance Corporation Ltd (SMFCL), a government-owned NBFC dedicated to driving growth in the maritime sector, is preparing to commence operations after receiving shareholders’ approval to raise up to ₹25,000 crore. Of this, ₹8,000 crore is planned for mobilisation during the current financial year.
The Mini Ratna CPSE will raise funds through banks, financial institutions, and bond issuances as per its Board-approved resource mobilisation plan. A company official confirmed that the corporation will soon initiate lending operations. Additionally, a portion of the ₹25,000 crore Maritime Development Fund—cleared by the Union Cabinet in September—will be infused into SMFCL as equity support.
According to the official, the Board has endorsed an ambitious roadmap that is expected to significantly enhance India’s maritime capabilities. SMFCL’s lending focus spans the entire marine ecosystem, including ports, port connectivity projects, port-led industrialisation, coastal community development, coastal shipping, and inland waterways. A key priority will be financing all categories of vessels.
SMFCL aims to play a transformative role in strengthening India’s shipbuilding industry and supporting the national ambition of ranking among the world’s top five shipbuilding nations by 2047. The corporation has initiated discussions with leading rating agencies to secure an apex-scale rating, supported by a positive outlook and a strong pipeline of maritime projects. This rating boost is expected to enhance investor confidence and optimise borrowing costs.
The NBFC will offer tailored financial products for both government and private sector entities, including short-, medium-, and long-term loans, support for cash flow mismatches , and various non-fund-based instruments.
“At this crucial juncture, when the government is extending extensive financial and institutional support to maritime-focused industries, SMFCL will create a more targeted and accessible financial ecosystem. This will empower projects that contribute to sustainable development, innovation, and national logistics efficiency,” the official said.
The government has recently appointed L V S Srinivasa Sudhakar Babu as the Managing Director of SMFCL. Babu previously served as Executive Director at Housing and Urban Development Corporation Ltd (HUDCO).
