"Sagarmala Development Company to Evolve into Shipping-Focused NBFC by March"

By March next year, Sagarmala Development Company Ltd (SDCL), currently tasked with developing projects under the Sagarmala Programme, will transform into a non-banking financial company (NBFC) focused exclusively on financing the ports and shipping sector.

A senior official confirmed that government approval has been granted, and the registration process for SDCL’s conversion into an NBFC has already begun. This process is expected to be completed within the next six to seven months.

The official explained that the Sagarmala Programme-related projects will be transferred to a separate entity, while the restructured company will operate similarly to the Power Finance Corporation (PFC), which specializes in financing for the power sector. The new NBFC will fund its operations through market borrowings, providing loans to companies and entities involved in ports and shipping.

It remains uncertain whether the new NBFC will benefit from the proposed Maritime Development Fund, as the details of this fund are still under discussion. Under the Maritime Amrit Kaal Vision 2047, the government plans to establish this fund, alongside other sector-focused financial mechanisms, to secure long-term capital for the ports and shipping industry.

Launched in 2016, the Sagarmala Programme aims to leverage India’s extensive coastline and navigable inland waterways to enhance port-led development and reduce logistics costs. The Maritime Amrit Kaal Vision 2047 seeks to position India as a global leader in shipbuilding, repair, recycling, and port-led industrialization, supported by various government policies and subsidies over the years.

ET