Maritime Lender Sagarmala Finance Expects ₹2,000 Crore Capital from Govt

India’s first dedicated maritime lender, Sagarmala Finance Corporation Ltd (SMFCL), has begun operations with an initial ₹4,300 crore disbursement, aiming to strengthen maritime finance as part of the government’s broader push to revive shipbuilding and the maritime economy, as per news reports. 

Capital Constraints and Equity Infusion 

SMFCL’s Managing Director LVS Sudhakar Babu highlighted that limited net worth has resulted in regulatory constraints under Reserve Bank of India norms, including CRAR and exposure limits.  

These restrictions cap lending to 25% for individual borrowers and 40% for groups. “This is becoming a challenge,” Babu said, adding that despite strong demand, lending capacity is restricted.  

To address this, the company has sought additional government equity, with an expected minimum infusion of ₹2,000 crore by FY27. 

Maritime Development Fund  

SMFCL also serves as the nodal agency for the ₹25,000 crore Maritime Development Fund, comprising a ₹20,000 crore Maritime Investment Fund and a ₹5,000 crore Interest Incentivisation Fund. 

Babu stated that SMFCL is prepared to offer loans at “around 20–30 basis points (bps) off the prevailing market rate,” citing low operating costs, a lean workforce, and the absence of legacy NPAs as key advantages. 

Competitive Lending 

The NBFC plans to play a significant role in shipbuilding finance, supported by the government’s ₹70,000 crore maritime revival package announced in the Budget by Nirmala Sitharaman.  

While current exposure limits restrict large private-sector projects, SMFCL will prioritise government-backed projects and consortium lending for high-value shipbuilding deals.  

With future equity support, Babu expects SMFCL to eventually finance PPP projects exceeding ₹1,000 crore and scale assets under management to ₹40,000–₹50,000 crore over the medium term. 

Read More: Sagarmala Finance Corporation Set to Begin Lending to Maritime Sector! 

Conclusion  

Sagarmala Finance is positioning itself as a catalyst for India’s maritime revival by offering cheaper credit, managing key funds and supporting shipbuilding. With proposed government equity infusion, the NBFC aims to overcome regulatory limits, expand lending capacity, participate in large projects and scale assets under management over the medium term. 

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