India expands maritime financing as Sagarmala Finance targets major growth
India’s Sagarmala Finance Corporation Limited (SMFCL) has sanctioned ₹11,563 crore in maritime financing and disbursed ₹5,107 crore as of 30 September 2026, according to the country’s Ministry of Ports, Shipping and Waterways.
The figures were announced during the inauguration of SMFCL’s corporate office in New Delhi by Union Minister Sarbananda Sonowal. The corporation, described by the government as India’s first dedicated maritime Non-Banking Financial Company (NBFC), is intended to expand access to long-term financing across the maritime sector.
SMFCL is targeting cumulative disbursements of ₹60,205 crore by the end of the 2030–31 financial year. However, achieving this target will depend on additional equity support and compliance with Reserve Bank of India requirements, including applicable debt-to-equity limits.
Maritime lending expands across ports and shipbuilding
SMFCL’s financing activities cover a broad range of maritime infrastructure and industrial projects, including ports, shipbuilding, ship repair, coastal infrastructure, inland waterways and port-hinterland logistics.
The corporation also supports rail and road connectivity projects associated with maritime infrastructure, providing financing for developments across the wider transport supply chain.
According to the ministry, more than half of the ₹11,563 crore already sanctioned had not yet been disbursed as of the end of September, reflecting the phased financing requirements of projects under development.
Sonowal said the institution would play an important role in mobilising long-term capital for India’s maritime economy, particularly in port-led development, shipbuilding and coastal connectivity.
The corporation also oversees the release and utilisation of funding associated with the Sagarmala programme and the National Maritime Heritage Complex, monitoring the allocation of resources to approved projects.
Maritime Development Fund moves towards launch
Alongside SMFCL’s lending activities, India is advancing the establishment of its Maritime Development Fund (MDF), comprising the Maritime Investment Fund (MIF) and the Interest Incentivisation Fund (IIF).
SBI Ventures Limited has been appointed fund manager for the Maritime Investment Fund, with registration as an Alternative Investment Fund under the Securities and Exchange Board of India expected to be completed by the end of November 2026.
The government is targeting an initial fund closing of ₹5,000 crore by January 2027. Its planned contribution to the Maritime Investment Fund could reach ₹9,800 crore, with the funding channelled through SMFCL.
These milestones remain targets rather than completed funding events.
The Interest Incentivisation Fund is already operational, with its online application portal available to eligible participants. According to the ministry, the mechanism has supported loans totalling ₹4,500 crore, while approximately ₹25 crore in interest subsidies has been released against interest payments made by borrowers.
Financing mechanisms to support maritime development
SMFCL is also involved in administering financial support arrangements under India’s Shipbuilding Development Scheme.
These include a credit risk cover mechanism designed to support eligible shipyards and lenders against specified payment risks, alongside interest incentives intended to reduce borrowing costs.
The corporation’s responsibilities extend from project appraisal and loan sanctioning to monitoring disbursements and the use of financing across maritime infrastructure developments.
The expansion of SMFCL and the planned Maritime Development Fund form part of India’s broader strategy to strengthen domestic maritime capabilities and improve access to capital for long-term projects.
While the latest figures demonstrate financing already sanctioned and disbursed, the government’s longer-term lending ambitions and the planned fund launch remain dependent on future funding, regulatory and implementation milestones.
