The management of the proposed ₹25,000 crore Maritime Development Fund (MDF) — announced in the Union Budget by Finance Minister Nirmala Sitharaman — will likely be shared among multiple institutions, including Sagarmala Finance Corporation Ltd, National Bank for Financing Infrastructure and Development (NaBFID), India Infrastructure Finance Co Ltd (IIFCL) and Hague-based Climate Fund Managers (CFM), people aware of the matter said.
Structured on a blended finance model, the MDF will be capitalised with 49 per cent concessional capital from the government — including contributions from state-owned major ports — to balance risk-return profiles, while the remaining 51 per cent will come from commercial investors such as multilateral/bilateral agencies and sovereign funds.
Blended finance strategically deploys public funds to de-risk projects and attract private capital at commercially viable terms. According to government estimates, India requires $18 billion to emerge as a global shipbuilding and repair hub, $388 billion to expand shipping tonnage, and $260 billion to enhance green tonnage.
The MDF will provide long-term, low-cost financing across the maritime spectrum, including ports, shipping, shipbuilding and inland waterways, through a mix of debt, equity and hybrid instruments.
Sagarmala Finance Corporation Ltd, a newly registered NBFC dedicated to the maritime sector, will on September 20 sign a series of Memoranda of Understanding (MoUs) with NaBFID, IIFCL and CFM to operationalise the fund.
CFM, a joint venture between Dutch development bank FMO and Sanlam InfraWorks of South Africa, manages over $2 billion in climate-focused investments across Africa, Asia and Latin America, and is targeting an additional $6 billion. Its portfolio spans renewable energy, green hydrogen, water and sanitation, and oceans infrastructure.
In addition, Sagarmala Finance Corporation will ink an MoU with Neo Fund for co-investment in ships alongside the MDF. Another pact will be signed with Swan Defence and Heavy Industries Ltd, operator of the Pipavav shipyard in Gujarat, for debt and equity investments from the fund, according to official documents.
The launch of the MDF is seen as a critical step in mobilising large-scale financing to position India as a global maritime powerhouse while aligning with the country’s energy transition and climate goals.
