Sagarmala Finance Corporation begins lending : Sanctions ₹4,300 crore in maiden approvals
Sagarmala Finance Corporation Limited (SMFCL), India’s first Non-Banking Financial Company (NBFC) dedicated exclusively to the maritime sector, has formally commenced lending operations, marking a significant step in building a specialised financial backbone for the country’s ports, shipping and inland waterways ecosystem.
The corporation, inaugurated in June 2025 as part of the Centre’s broader maritime development agenda, confirmed that its Board has sanctioned loans worth nearly ₹4,300 crore during its 51st meeting held on December 30, 2025. The approvals represent SMFCL’s first major lending decisions and signal the transition of the entity from a policy-led concept to an operational financial institution.
According to officials familiar with the development, the sanctions are aligned with an aggressive scale-up strategy cleared earlier at the company’s Annual General Meeting. At the AGM, the Board approved a borrowing ceiling of ₹25,000 crore and set an ambitious lending target of ₹8,000 crore for the financial year 2025–26. With the current sanctions due to be disbursed before the close of the fiscal year, SMFCL is on track to create an ₹8,000 crore loan book in its very first year of operations.
A substantial portion of the sanctioned amount—around ₹4,000 crore—has been earmarked for a Greenfield port project. While detailed project specifics have not yet been publicly disclosed, officials said the funding would support the development of new port infrastructure designed to enhance capacity, improve logistics efficiency and cater to growing cargo volumes along India’s coastline. Greenfield port development has been identified as a critical component of India’s long-term maritime strategy, particularly as the country seeks to reduce logistics costs and strengthen its position in global supply chains.
In addition to the port project, key public sector maritime entities have also secured funding. Dredging Corporation of India (DCI) has been sanctioned a loan of ₹150 crore, which is expected to bolster dredging capabilities essential for maintaining navigational depths at major and minor ports. Goa Shipyard Limited, one of India’s leading defence and commercial shipbuilders, has received approval for ₹110 crore, reinforcing indigenous shipbuilding and repair infrastructure.
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal described the commencement of lending by SMFCL as a milestone moment for the sector. In a statement, the minister said the move reflects the government’s commitment to providing long-term, affordable finance tailored to the unique needs of maritime infrastructure, which typically involves high capital expenditure and long gestation periods.
“Dedicated maritime financing has long been a missing piece in India’s infrastructure ecosystem. With SMFCL beginning operations, we are laying the foundation for sustained growth across ports, shipping, shipbuilding and allied activities,” Sonowal said, adding that the institution would play a crucial role in realising the vision of a modern, green and globally competitive maritime sector.
SMFCL has been set up to address structural financing gaps that traditional lenders have often been reluctant to fill due to the sector’s risk profile and extended payback timelines. By functioning as a sector-focused NBFC, the corporation aims to offer customised financial products, longer tenures and competitive pricing to maritime projects, including ports, terminals, dredging, shipbuilding, inland waterways and coastal shipping.
The corporation is currently awaiting credit ratings from major rating agencies, a step that officials expect will significantly lower its borrowing costs as it scales up operations. A favourable rating is seen as essential for SMFCL to raise funds efficiently from the market and pass on the benefits to borrowers in the form of reduced interest rates.
Beyond direct lending, SMFCL has also been entrusted with a broader strategic role in the maritime financing landscape. The corporation serves as the nodal agency for operationalising the Maritime Development Fund (MDF), which carries a corpus of ₹25,000 crore. The MDF is intended to catalyse private investment in shipping and maritime infrastructure by providing risk capital and blended finance solutions.
In addition, SMFCL will manage the government’s contributions to the Maritime Investment Fund in a fiduciary capacity. This role positions the corporation at the centre of multiple financing channels aimed at accelerating maritime growth, enhancing coordination between public and private stakeholders, and ensuring efficient deployment of capital.
Industry observers see the launch of SMFCL’s lending operations as timely, given the scale of investment envisaged under initiatives such as Sagarmala, which aims to modernise ports, improve port connectivity and promote port-led industrialisation. With cargo volumes rising and new infrastructure demands emerging from energy transition, coastal shipping and cruise tourism, the need for specialised finance is expected to grow sharply in the coming years.
If the initial momentum is sustained, SMFCL’s maiden year could set the tone for a new era of maritime financing in India—one where dedicated capital supports long-term infrastructure creation, strengthens domestic capabilities and anchors India’s ambitions as a leading maritime nation.
Author: shipping inbox
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