New Delhi, Nov 22 Government-run Sagarmala Finance Corporation Limited (SMFCL) has approved an overall borrowing limit of Rs 25,000 crore, with Rs 8,000 crore earmarked for the current financial year (FY26), it was announced on Saturday.
To meet this requirement, the mini-ratna CPSE under the Ministry of Ports, Shipping and Waterways will mobilise funds through leading banks, financial institutions and bond issuances in accordance with its resource mobilisation plan, enabling the Corporation to commence lending operations shortly.
SMFCL convened its annual general meeting (AGM) and endorsed a forward-looking roadmap to strengthen the maritime financing ecosystem of the country.
According to the ministry, the company is currently in discussions with major financial rating agencies.
“With a positive sector outlook and a robust project pipeline, the Corporation is expected to secure ratings in the apex scale, which will further enhance investor confidence and help optimise interest costs,” the ministry said.
The Corporation has outlined a comprehensive financing framework to support the entire maritime value chain.
This includes funding for ports, port connectivity projects, port-led industrialisation, coastal community development, coastal shipping and inland waterways, with particular emphasis on vessel financing.
Moreover, the Corporation is also poised to play a pivotal role in advancing India’s shipbuilding capabilities, contributing to the nation’s ambition of establishing a strong position in the global shipbuilding arena.
According to the statement, SMFCL will offer customised loan products to eligible government and private sector entities, covering short-term, medium-term and long-term financing, along with support for cash-flow mismatches and non-fund-based instruments.
India has introduced robust support measures to accelerate shipbuilding activities, like 15-25 per cent capital support for vessels built in India; 5 per cent additional incentive for ship recycling; Marine Development Fund for equity financing; 3 per cent interest subvention and infrastructure support for greenfield shipyards and clusters.
(Auto generated news from IANS Feed. This has not been edited by enewstime desk)
