India is poised to establish a dedicated maritime financier, a strategic move by the Ministry of Port, Shipping, and Waterways (MoPSW) to bolster both domestic and international marine projects.
The Sagarmala Development Company Ltd (SDCL), a pivotal infrastructure development agency, is on the cusp of being repositioned as a non-banking financial firm (NBFC). This significant transformation is set to be formally approved this month, with SDCL having applied for a Type-II NBFC Certificate of Registration (CoR) from the Reserve Bank of India (RBI). This proactive step will unlock new avenues for funding critical maritime infrastructure, fostering sustainable growth within India’s blue economy and expanding its global maritime footprint.
The application for the CoR was submitted by SDCL on December 20, 2024, and Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal has indicated that the approval is highly probable by June 2025. Upon receiving this accreditation, SDCL will gain the authority to provide financing for “all suitable projects in the maritime sector,” a scope that will extend to include crucial areas such as shipping and lease financing. The classification as a Type-II NBFC is particularly significant, as it applies to entities that interact directly with clients or intend to do so in the future, and either receive public funds or plan to accept them. This distinction from Type-I NBFCs, which do not have client interfaces or accept public financing, ensures a degree of regulatory oversight from the RBI, though Type-II NBFCs are not as heavily scrutinised as Type-I. SDCL has been diligently addressing all queries from the RBI and is in the process of drafting necessary policies to operate in full compliance with the central bank’s master guidelines.
The operational shift to an NBFC status will enable SDCL to raise diverse long-term and short-term funds from various financial institutions. This enhanced financial flexibility is crucial for the ambitious scope of projects SDCL intends to undertake. The organisation plans to lease finance shipping assets and offer comprehensive debt and financing solutions to a wide array of marine enterprises. Moreover, SDCL will assume a critical financial role within the newly formed Bharat Global Ports Consortium, an entity dedicated to identifying and developing port-led projects abroad. According to the Minister, SDCL’s responsibilities will encompass “formulating financial strategies and offering advice on project financing and execution,” underscoring its pivotal role in India’s global maritime ambitions.
Currently, SDCL’s mandate primarily focuses on enhancing infrastructure at existing ports, including capacity augmentation and efficiency improvements. It is also actively involved in the development of new ports and allied connectivity infrastructure that supports the maritime ecosystem. In its project financing, SDCL’s equity contribution to any project Special Purpose Vehicle (SPV) will be determined based on the Detailed Project Report (DPR) and thorough financial due diligence, with equity contributions generally not exceeding 49 per cent. This ensures a balanced risk-sharing model while enabling significant private sector participation.
The current Board of Directors for SDCL features experienced professionals, including TK Ramachandran, Shipping Secretary, as Chairman; Dilip Kumar Gupta as Managing Director; AC Nayak, Director Finance; R Lakshmanan, Joint Secretary of the Ministry, as one of the directors; and Venkatesapathy S, who will also serve on the Board. This seasoned leadership is critical for steering SDCL through its transformation and into its new role as a maritime financier. This development holds immense promise for fostering sustainable coastal communities, promoting gender-neutral employment opportunities within the maritime sector, and contributing to the overall economic development of India through enhanced trade and logistics. By establishing this dedicated financing arm, India is proactively investing in a greener, more connected, and prosperous maritime future.
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