India’s first maritime NBFC, SMFCL begins lending, sanctions ₹4,300 cr

By Admin

02 Jan, 2026

Introduction
India’s maritime sector has reached a significant milestone with the commencement of lending operations by Sagarmala Finance Corporation Limited (SMFCL), the country’s first maritime-focused Non-Banking Financial Company (NBFC). This development marks a new chapter in maritime financing, aimed at strengthening port infrastructure, shipbuilding, dredging, and allied industries critical to India’s long-term economic growth.

SMFCL Enters Maritime Lending Space
Sagarmala Finance Corporation Limited formally began its lending journey after approving loan sanctions worth approximately ₹4,300 crore at its 51st Board Meeting held on December 30, 2025. This move aligns with the strategic roadmap approved by the Board and positions SMFCL as a dedicated financier for India’s maritime ecosystem.

Major Allocation for Greenfield Port Development
Out of the total sanctioned amount, nearly ₹4,000 crore has been earmarked for a Greenfield Port Project. This substantial allocation reinforces the Government of India’s push for port-led development and underlines the strategic importance of modern port infrastructure in boosting trade, logistics efficiency, and regional economic growth.

Support for Dredging and Indigenous Shipbuilding
In addition to port development, the sanctioned tranche includes ₹150 crore for Dredging Corporation of India (DCI) and ₹110 crore for Goa Shipyard. These allocations are expected to enhance dredging capacity and support indigenous shipbuilding, both of which are vital for maintaining navigable waterways and strengthening domestic maritime manufacturing capabilities.

Ambitious Lending and Borrowing Roadmap
SMFCL’s entry into lending follows an aggressive market roadmap approved at its Annual General Meeting. The Board has cleared an overall borrowing limit of ₹25,000 crore and set a lending target of ₹8,000 crore for the current financial year. With the latest sanctions scheduled for disbursement within the ongoing fiscal year, SMFCL is targeting a loan book of ₹8,000 crore in FY 2025–26, reinforcing its ambition to emerge as a credible and specialised maritime financier.

Inauguration and Vision Alignment
SMFCL was inaugurated on June 26, 2025, by Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, as India’s first NBFC exclusively focused on maritime financing. The institution was established to bridge long-standing financing gaps and provide sector-specific financial solutions to ports, MSMEs, startups, and institutions, in line with the Amrit Kaal Vision 2047 and India’s broader blue economy goals.

Government’s Perspective on Maritime Finance Reform
Commenting on the commencement of lending operations, Union Minister Sarbananda Sonowal described it as a milestone reflecting the government’s resolve to build a robust financial architecture for maritime growth. He highlighted that under the leadership of Prime Minister Narendra Modi, the maritime sector has seen unprecedented policy clarity, institutional reform, and investor confidence, creating the ecosystem required for specialised institutions like SMFCL to catalyse blue economy development and move towards the vision of Viksit Bharat.

Institutional Backing and Maritime Development Fund
SMFCL’s expansion strategy is supported by strong institutional backing from the Ministry of Ports, Shipping and Waterways, which has designated the corporation as the nodal agency for the Maritime Development Fund (MDF) with a total corpus of ₹25,000 crore. The MDF comprises a Maritime Investment Fund of ₹20,000 crore and an Interest Incentivisation Fund of ₹5,000 crore. SMFCL will manage the Government of India’s contribution to the Alternative Investment Fund in a fiduciary capacity and channelise interest incentives across maritime segments.

Future Opportunities in Shipbuilding Finance
The forthcoming notification of guidelines for the Shipbuilding Financial Assistance Scheme, with an outlay of ₹44,700 crore, is expected to open new avenues for investment and collaboration. This initiative is likely to further strengthen shipbuilding and allied industries, boosting domestic manufacturing and self-reliance in the maritime sector.

Tailored Financial Products for the Maritime Value Chain
SMFCL plans to offer customised financial products to eligible government and private sector entities across the entire maritime value chain. These offerings will include short-, medium-, and long-term loans, cash-flow mismatch solutions, balance-sheet financing, and non-fund-based products designed specifically for maritime projects and enterprises.

Conclusion
With lending operations now underway, Sagarmala Finance Corporation Limited is well positioned to play a catalytic role in accelerating maritime infrastructure development, supporting indigenous shipbuilding, and deepening access to institutional finance. As India’s first maritime NBFC, SMFCL stands as a key pillar in advancing the nation’s rapidly expanding blue economy in alignment with national development priorities.