The NBFC for the maritime sector plans to raise ₹8,000 crore this fiscal year to fund projects
After receiving approval from shareholders on Friday to fund up to 25,000 crore, including 8,000 crore during the current fiscal year, Sagarmala Finance Corporation, a Non-Banking Financial Company (NBFC) focused on the maritime industry, has announced the start of operations.
According to a company spokesman, the government-owned micro ratna Central Public Sector Enterprise (CPSE) will begin lending operations shortly and will raise money from banks and financial institutions as well as through bonds in accordance with the resource mobilisation strategy agreed by its Board.
SMFCL will also receive equity backing from a share of the ₹25,000 crore Maritime Development Fund that the Cabinet approved in September.
According to the source, the Board of SMCL has adopted an ambitious roadmap for the company, which would further strengthen India’s marine capabilities.
With a particular emphasis on all forms of vessel financing, SMFCL will offer financial support to the marine ecosystem, including ports, port connectivity, port-led industrialisation, coastal community development, coastal shipping, and inland waterways.
According to SMFCL, it intends to play a significant part in shipbuilding and support India’s goal of ranking among the top five shipbuilding nations in the world by 2047.
With a strong project pipeline in the maritime industry and a bright outlook, SMFCL has started negotiations with leading financial rating agencies to obtain an apex-scale rating. According to the official, this will help optimise the interest card rate and increase investor confidence.
The NBFC would provide customised loan solutions to both public and private organisations involved in the maritime industry. The financial support consists of non-fund-based items, cash flow imbalances, and short-, medium-, and long-term loans.
SMFCL will offer a more accessible financial structure for India’s maritime expansion. This enables key projects that boost sustainable development, innovation, and national logistics efficiency, especially as the government provides substantial support to the sector.
L V S Srinivasa Sudhakar Babu was recently appointed Managing Director of SMFCL by the Government. Sudhakar Babu used to work at Housing and Urban Development Corporation (HUDCO) as an Executive Director.
SOURCE – ET INFRA
