CHENNAI: India’s first maritime-sector NBFC, Sagarmala Finance Corporation Limited (SMFCL), has received board approval to raise up to Rs 25,000 crore, marking a significant step in the government’s plan to boost long-term financing for ports, shipping and coastal logistics. The approval, cleared at the company’s Annual General Meeting, allows SMFCL to borrow from banks, financial institutions and the bond market, and includes a plan to raise Rs 8,000 crore during the current financial year, SMFCL announced on Saturday.
SMFCL, which became operational as an RBI-registered NBFC on June 19, 2025, is a Mini-Ratna Category-I central public sector enterprise under the Ministry of Ports, Shipping and Waterways. It has been set up to fill long-standing financing gaps in the maritime economy by providing specialised credit to ports, shipping companies, maritime MSMEs, startups, shipyards, coastal-shipping operators and inland waterways projects. The company’s mandate places it at the centre of India’s broader maritime modernisation push, including the government’s Maritime Amrit Kaal Vision 2047.
According to officials, the borrowing programme will be supported partly through the government-backed Maritime Development Fund, a Rs 25,000-crore corpus created to stimulate investment across the sector. The NBFC is in discussions with rating agencies to secure a strong credit rating, which it considers essential for lowering borrowing costs and attracting institutional investors.
The government views SMFCL as a crucial financial anchor for the next phase of maritime infrastructure development. By offering customised financing for projects such as port connectivity corridors, coastal shipping services, vessel acquisition and shipbuilding expansion, the corporation is expected to accelerate private investment and ease capital constraints that have traditionally slowed the sector. Officials say the new borrowing limit will give the company the financial muscle to scale up operations quickly as demand for maritime credit continues to grow.
However, SMFCL’s success will hinge on how effectively it can raise funds in the market and manage the sector’s unique risks, ranging from project delays to regulatory uncertainties. Analysts note that the first tranche of fund-raising this year will be an important test of investor confidence in the newly formed NBFC. Still, the approval of the Rs 25,000-crore limit signals a strong policy push and is expected to position the corporation as a central player in India’s maritime transformation.