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Sagarmala Finance Corporation Ltd (SMFCL) received shareholder approval earlier this week to raise up to INR 25,000 crore for upcoming maritime projects, with INR 8,000 crore intended to be mobilised within the current financial year. The government-owned NBFC plans to borrow from banks, financial institutions and issue bonds. Part of the funding support will also come from the INR 25,000 crore Maritime Development Fund cleared by the Cabinet in September 2025. SMFCL will finance ports, port-connectivity, coastal shipping, inland waterways, shipbuilding and vessel acquisition, and is working with rating agencies to secure an apex-level rating.
Sagarmala Finance Corporation Ltd (SMFCL) secured shareholder approval earlier this week to raise up to INR 25,000 crore to support a range of maritime-sector projects across the country. Within this overall limit, the corporation aims to borrow INR 8,000 crore during the current financial year as part of its initial resource-raising plan. The government-owned NBFC said it intends to mobilise funds from banks, financial institutions and through various bond issuances. The approval gives the organisation flexibility to begin planned lending operations for the maritime sector. Advertisement
A portion of the capital requirement will also be met through the Maritime Development Fund (MDF), an INR 25,000 crore fund that received Cabinet approval in September 2025. This fund is expected to provide equity support to SMFCL. The corporation will offer financial assistance to projects related to ports, port-connectivity, port-linked industrial activity, coastal community-focused initiatives, coastal shipping, inland waterways and vessel financing covering different categories of ships and boats.
SMFCL is currently engaging with rating agencies to obtain an apex-level rating. The corporation expects that a strong rating supported by a structured project pipeline will help lower borrowing costs and attract a wider pool of lenders and investors. The organisation plans to offer a mix of short-, medium- and long-term loan products, along with cash-flow mismatch support and non-fund-based facilities for both government-owned and private operators.
The central government recently appointed L. V. S. Srinivasa Sudhakar Babu as the Managing Director of SMFCL. Before this role, he served as Executive Director at Housing & Urban Development Corporation Ltd (HUDCO). SMFCL received its NBFC registration from the Reserve Bank of India on 19 June 2025, making it the first dedicated non-banking financial company focused entirely on maritime-sector development.
The corporation's formation and funding plan align with ongoing efforts under the Sagarmala Programme, which has worked to improve port-led development since being approved in 2015. With many port-modernisation and coastal-infrastructure projects currently underway, the funding window created through SMFCL is expected to address long-standing financing gaps in shipbuilding, port capacity enhancement and inland water transport.
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