Latest news with #SMFCL
India Today
01-07-2025
- Business
- India Today
Financing the blue frontier: Why SMFCL is India's big maritime bet
India may have found a way to steer the maritime economy out of its financial drift—too capital-intensive for banks, too fragmented for investors and too strategic for piecemeal fixes. A new financial engine is being built to power the country's coastal infrastructure, logistics corridors and blue economy ambitions, one that aims to do for the sea what earlier institutional innovations did for railways and floated its sectoral financial institution, Sagarmala Finance Corporation Limited (SMFCL), in the third week of June, marking a game-changing institutional reform. It marks the conversion of the dormant Sagarmala Development Company Ltd into a full-fledged non-banking financial company (NBFC) with a precise mandate: to unlock long-gestation port and maritime projects, fund green technologies and anchor long-term capital into one of India's most under-financed infrastructure verticals. Part of a larger playbook to construct purpose-built financial institutions for high-impact sectors, SMFCL is intended to serve as the financial backbone of India's maritime like the Indian Railway Finance Corporation (IRFC) enabled the railways to scale without waiting for budgetary support, or how REC Limited and PFC (Power Finance Corporation Ltd) underwrote India's power revolution, SMFCL will function as a strategic financier—bridging risk gaps, deepening India's still-shallow debt markets and crowding in capital where commercial banks hesitate. Amid all the cheers, it may also lay down a blueprint for other development finance institutions (DFIs) in the works at the Nirmala Sitharaman-led Union finance the scale of ambition is massive. The Sagarmala programme encompasses over 830 projects worth Rs 5.8 lakh crore, spanning modernisation of major and minor ports, last-mile connectivity, cruise terminals, multimodal inland waterway integration and the development of coastal economic zones. But most of these projects are capital-intensive, slow-yielding and exposed to both commercial and regulatory For years, these structural characteristics made the sector unattractive to traditional lenders. SMFCL has been designed to reverse that by acting as an anchor financier, de-risking investment and standardising a maritime-specific financing its new role, the NBFC can issue both rupee and foreign currency bonds, structure green or blue finance instruments, and offer blended finance arrangements combining equity windows, subordinated debt and guarantees. It can lend not only to public agencies and special purpose vehicles (SPVs) but also to private players, PPP (public-private partnership) consortia, maritime start-ups and port-linked infrastructure flexibility is key. Shipping and coastal projects are often too complex or niche for large banks and too risky for pension and insurance funds. SMFCL is being positioned to fill that port authorities and developers in Gujarat, Andhra Pradesh, Tamil Nadu and Kerala are recalibrating their investment pipelines in light of the new financing window. A senior official in the Sarabanada Sonowal-led Union ministry of ports, shipping and waterways told INDIA TODAY that multiple projects, including shore power infrastructure, hydrogen-ready bunkering stations and refrigerated container hubs, were waiting in the wings for a credible institutional lender. 'The pipeline was always there. What we lacked was a dependable financing platform. SMFCL will now be that anchor,' the official proposals under the SMFCL's review include a cold storage logistics park near Tuticorin, green retrofits for vessels in Kochi, and capex support for inland ferry operators along the Brahmaputra and Ganga waterways. The NBFC is also being tasked with structuring new financial instruments, including a maritime-specific infrastructure investment trust (InvIT) and a 'Blue Bond' aimed at global ESG ((environmental, social and governance))-focused investors. Conversations are underway with multilateral institutions to co-finance some of these instruments through guarantee familiar with the internal planning say that the new institution has been carefully insulated from bureaucratic overreach. SMFCL will operate under the administrative oversight of the shipping ministry but will be governed by an independent board that includes financial sector veterans, maritime professionals and infrastructure finance specialists. Its initial authorised capital is set at Rs 1,000 crore, with the option to scale up rapidly through bond issuances and third-party equity participation. 'It's not meant to lend like a PSU bank,' explained another official. 'It's meant to crowd in capital through credit enhancement and policy-backed financial innovation.'That innovation is crucial, because India's maritime infrastructure ambitions intersect with a range of frontier policy agendas—logistics efficiency, renewable shipping fuels, port-led industrialisation and even geopolitics. And yet, the financing ecosystem remains deeply underdeveloped. The maritime sector contributes nearly 95 per cent of India's trade by volume, but less than 2 per cent of infrastructure finance goes to commercial banks still risk-averse after a decade of NPAs (non-performing assets) and DFIs like NaBFID (National Bank for Financing Infrastructure and Development) focused more on roads and energy, a sector-focused financial body like SMFCL fills a critical creation is part of a wider trend. After two decades of relying on private capital and multilateral assistance for infrastructure finance, the government has begun to aggressively build a new generation of development finance institutions: NaBFID for large-scale infra, IREDA (Indian Renewable Energy Development Agency Limited) and SECI (Solar Energy Corporation of India Limited) for renewables, NIIF (National Investment and Infrastructure Fund Limited) for blended strategic capital, and now SMFCL for maritime and coastal logistics. It's a strategy that recognises both the limitations of market finance in long-gestation sectors and the risk-aversion of public banks new institutions share a common design philosophy: stay lean, avoid political interference, use modest public funds to unlock far larger pools of capital, and enable sectoral transformation through financial architecture. SMFCL may end up being a test case for whether that model can work in complex, multi-stakeholder, slow-moving sectors like ports and coastal India is hardly the first to recognise the need for specialised financial institutions to support maritime ambitions. China, for instance, has long deployed the China Development Bank (CBD) and Export-Import Bank of China to underwrite massive port infrastructure—both domestically and under the Belt and Road CDB's Maritime Silk Road Fund has offered concessional loans and equity to Chinese state-owned port operators, enabling strategic acquisitions, from Sri Lanka's Hambantota to Greece's Piraeus. Crucially, China didn't rely on one institution but created an entire financial ecosystem tailored to maritime power the United States, the Maritime Administration (MARAD) runs the Federal Ship Financing Program, more commonly known as Title XI, which provides loan guarantees to US shipyards and operators building or retrofitting vessels. While modest in scale, it functions as a critical lifeline for preserving maritime industrial capacity in a highly capital-intensive sector. Additionally, the US Department of Transportation supports port projects through discretionary grants under programmes such as the Port Infrastructure Development Program (PIDP), aligning infrastructure finance with national logistics has leaned heavily on public-private structures and green mandates. The European Investment Bank (EIB) has emerged as a key backer of climate-aligned port infrastructure, channeling billions into electrified shipping lanes, hydrogen port hubs and offshore wind-linked maritime assets. Port authorities in Rotterdam, Antwerp and Hamburg work closely with dedicated green financing vehicles to fund retrofitting, digitisation and decarbonisation—often through blended finance that derisks private capital using public Russia has created specialised maritime finance channels through Vnesheconombank and targeted sovereign support for Arctic shipping and Far East port development—aligning maritime finance with strategic goals in contested sets SMFCL apart, at least for now, is its hybrid nature. Unlike China's state-heavy model or the US's security-focused interventions, India's effort appears geared towards creating a commercially viable but developmentally anchored financial institution. If executed well, it could blend the discipline of a DFI with the flexibility of market-aligned finance—something few countries have pulled off in the maritime will determine SMFCL's legacy is its ability to move swiftly, build institutional depth and avoid the bureaucratic drift that has plagued many PSU (public sector undertaking) initiatives in the past. For that, the ministry is reportedly pushing for private sector hiring, independent credit appraisal teams and partnerships with tech-led maritime firms to ensure deal flow. The NBFC will also explore co-financing arrangements with sovereign wealth funds and blue economy accelerators based in Singapore, Norway and the successful, SMFCL could become a proving ground for blue finance innovation in India. Think tanks have already proposed the creation of a Blue Credit Market—where verified coastal restoration and marine biodiversity projects can trade credits like carbon. SMFCL could become the financial backbone of that ecosystem. There are also proposals to support India's global port ambitions through a new Bharat Ports Consortium, using SMFCL as a sovereign anchor investor in overseas maritime SMFCL is not just a financing body—it is a strategic bet on India's coastal future. It signals a shift from fragmented port policy to integrated maritime development. And more importantly, it places capital architecture at the centre of that vision. As the first set of projects come to market, the industry is watching closely. So are investors. And so, quietly, is the rest of the world. India's maritime sector may finally have found its ballast. Not with fanfare. But with to India Today Magazine- EndsMust Watch
Time of India
30-06-2025
- Politics
- Time of India
School Assembly news headlines for today July 1, 2025: From sports to education, check 20+ national & international news
School Assembly news headlines for today July 1, 2025: Today, July 1, 2025, the school assembly news brings you important updates from India and around the world. India has launched its first Maritime NBFC, SMFCL, to boost the shipping sector and support the Amrit Kaal Vision 2047. Finance Minister Nirmala Sitharaman is visiting Spain, Portugal, and Brazil to attend a UN conference on global financial reforms. The government has also launched the 'GoIStats' app to help citizens easily access official data. In state news, security forces conducted a joint mock drill on the Jammu-Srinagar highway to ensure safety during the Amarnath Yatra 2025. Internationally, Russia plans to cut its defense budget while warning about NATO's rising military spending. In sports, cricket and other events continue to capture attention worldwide. These headlines cover over 20 national and international stories across sports, education, business, and current affairs to keep students informed and ready for the day ahead. Today's national news headlines in English for school assembly, July 1, 2025 Stampede During Puri Rath Yatra Kills Three Devotees; Odisha CM Orders Immediate Probe into Security Lapses PM Modi Calls 1975 Emergency a Dark Chapter in Indian Democracy, Urges Youth to Protect Constitutional Values Southwest Monsoon Covers Entire India Nine Days Early; IMD Tracks Cyclonic Activity Over Eastern Region India Expands Social Security Coverage to Over 94 Crore People, Reaching 64.3% of Population Delhi Plans First-Ever Artificial Rain via Cloud Seeding to Tackle Pollution, Operation Scheduled in July Today's international news headlines in English for school assembly, July 1, 2025 Trump Suspends U.S.-Canada Trade Talks Over Digital Tax, Announces Fresh Tariffs on Canadian Goods Russia Launches Largest Aerial Attack on Ukraine, Fires 537 Weapons in Overnight Strike German Foreign Minister Visits Kyiv, Pledges Continued Support for Ukraine Against Russian Invasion Severe Heat Waves Hit Southern Europe as Authorities Warn Against Wildfire Risks Tropical Storm Barry Forms off Eastern Coast of Mexico, Bringing Heavy Rainfall Today's sports news headlines in English for school assembly, July 1, 2025 French Tennis Player Benjamin Bonzi Stuns Daniil Medvedev in First Major Upset at Wimbledon 2025 National-Level Teenage Female Boxer Files FIR Alleging Sexual Harassment by Woman Coach Praggnanandhaa Supports Magnus Carlsen After Controversial Table Slam at Norway Chess New Zealand's Liam Lawson Achieves Best Ever F1 Finish, Places Sixth at Austrian Grand Prix Manchester City Prepares for FIFA Club World Cup Clash Against Al Hilal in Orlando Today's education news headlines in English for school assembly, July 1, 2025 Karnataka PUC 2 Exam 3 Results 2025 to be Declared on July 1 at Official Websites UPMSP Compartment Exams Scheduled for July 19 for Class 10th and 12th Students ICAI CA Final Result for May Session Expected Between July 3 and 4 UP Government Renames 5 State Engineering Colleges to Instill Values in New Generation IIT Bombay, Kharagpur, and Others on UGC's Defaulter List for Non-Compliance of Anti-Ragging Norms Today's state news headlines in English for school assembly, July 1, 2025 Maharashtra government withdraws GRS on three-language policy, announces to set up panel Former MLA to be elected Puducherry BJP chief unopposed today Thane civic body urges association not to launch protest over unauthorised schools Jammu and Kashmir LG reviews Amarnath Yatra preparations at Nunwan, Chandanwari base camps Maharashtra reports 6 new COVID-19 cases Top business and economic news headlines for July 1, 2025 Sensex falls 452 points; Nifty around 25,500 as PSU Banks outperform Ketan Kumar Joshi appointed Chief Financial Officer of Jammu & Kashmir Bank ITI signs Rs 1,901 crore agreement with BSNL for BharatNet project in Northeast GAIL India plans to acquire 106.75 crore shares of Talcher Fertilizer to revive Odisha plant Alembic Pharmaceuticals receives final USFDA approval for cancer treatment drug Daily word and thought of the day for school assembly, July 1, 2025 For your school assembly on July 1, 2025, here are the Daily Word and Thought of the Day: Word of the Day:Concatenate (verb) – to link things together in a series or chain. Thought of the Day:"Success is not final, failure is not fatal: It is the courage to continue that counts." For more informative articles on historical and upcoming events from around the world, please visit Indiatimes Events.
Time of India
26-06-2025
- Business
- Time of India
India launches first maritime NBFC to boost port, shipping and blue economy sectors
Union minister Sarbananda Sonowal launches key tech initiatives to boost efficiency, productivity in major maritime digital push. NEW DELHI: In a major push to strengthen India's maritime economy, Union minister Sarbananda Sonowal on Thursday launched the country's first sector-specific Non-Banking Financial Company (NBFC), Sagarmala Finance Corporation Ltd (SMFCL). The corporation, which was formerly known as Sagarmala Development Company Ltd, has now been registered as an NBFC with the Reserve Bank of India (RBI) as of June 19, the Ministry of Ports, Shipping and Waterways confirmed. 'SMFCL will bridge crucial financing gaps and offer sector-specific financial solutions, empowering ports, MSMEs, startups, and institutions,' said Sonowal at the launch. 'This has been a long-standing demand of the maritime industry and aligns with our Maritime Amrit Kaal Vision 2047.' A financing engine for India's maritime future As a specialised financial entity, SMFCL will offer short-, medium-, and long-term funding tailored to the maritime sector. The beneficiaries include port authorities, shipping firms, maritime startups, MSMEs, and even educational institutions focused on maritime studies. Beyond traditional shipping and port logistics, the NBFC will also support strategic growth areas like shipbuilding, cruise tourism, renewable energy, and maritime education. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Vision 2047 and Viksit Bharat The launch of SMFCL fits squarely into India's broader Maritime Amrit Kaal Vision 2047, which aims to make India a global maritime leader and a key node in global trade and logistics. With its new financial arm, the government hopes to unlock stalled infrastructure projects, fuel innovation, and contribute to national logistics efficiency. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
26-06-2025
- Business
- Time of India
India's first maritime NBFC launched
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India launched its first maritime sector Non Banking Financial Company (NBFC), Sagarmala Finance Corporation Limited (SMFCL), Thursday. Addressing the event, Minister of Ports, Shipping and Waterways (MoPSW), Sarbananda Sonowal said SMFCL will bridge crucial financing gaps and offer sector-specific financial solutions, empowering ports, startups, and on the occasion, Union Ports, Shipping, and Waterways Minister, Sarbananda Sonowal said, 'This has fulfilled a long standing demand of the maritime industry in the country.'SMFCL, a Mini Ratna, Category-I, Central PublicSector Enterprise, was formally registered as a NBFC with the Reserve Bank of India (RBI) earlier this said SMFCL has Rs 680 crore Tier 1 capital which can be leveraged to borrow a targeted Rs 3400 crore. 'We are ready to offer much bigger loans with consortium partners,' an official told corporation will offer tailored financial products—including short, medium, and long-term funding—to a diverse range of stakeholders such as port authorities, shipping companies, MSMEs, startups, and maritime educational its expanded mandate, SMFCL will also support strategic sectors like shipbuilding, renewable energy, and cruise tourism, the statement added.
Time of India
26-06-2025
- Business
- Time of India
Sarbananda Sonowal inaugurates Sagarmala Finance Corporation Limited, India's first maritime non-banking financial company
New Delhi: The Union Minister of Ports, Shipping & Waterways MoPSW), Sarbananda Sonowal , on Thursday inaugurated Sagarmala Finance Corporation Limited (SMFCL), India's first Non-Banking Financial Company (NBFC) in the maritime sector . The Union Minister Sonowal was joined by the Union Minister of State for MoPSW, Shantanu Thakur along with Secretary, MoPSW, TK Ramachandran at the launch. Formerly known as Sagarmala Development Company Limited, SMFCL is now positioned to play a transformative role in India's maritime infrastructure development, in alignment with the Amrit Kaal Vision 2047 . SMFCL --a Mini Ratna, Category-I, Central Public by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When the Camera Clicked at the Worst Possible Time Read More Undo Sector Enterprise has been formally registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI) as of June 19, 2025. Speaking on the occasion, the Union Minister, Sarbananda Sonowal, said, "The registration of Sagarmala Finance Corporation Limited as an NBFC is a major milestone in India's maritime journey. Under the visionary leadership of Prime Minister Narendra Modi, we are taking decisive steps to strengthen the maritime sector as a key pillar of our economy. SMFCL will bridge crucial financing gaps and offer Sector-specific financial solutions, empowering ports, MSMEs, startups, and institutions. It has fulfilled a long-standing demand of the maritime industry in the country. This move is in perfect alignment with the Maritime Amrit Kaal Vision 2047 and our shared goal of making India a leading global maritime power and Viksit Bharat." Live Events As a sector-specific NBFC, SMFCL is uniquely poised to bridge financing gaps in the maritime sector and catalyse economic growth. The corporation will offer tailored financial products--including short, medium, and long-term funding--to a diverse range of stakeholders such as port authorities, shipping companies, MSMEs, startups, and maritime educational institutions. In its expanded mandate, SMFCL will also support strategic sectors like shipbuilding, renewable energy, cruise tourism, and maritime education, further reinforcing India's vision to emerge as a global maritime leader. Speaking on the occasion, the Union Minister of State for MoPSW, Shantanu Thakur, said, "With SMFCL now functioning as a dedicated NBFC, we're creating a focused financial ecosystem to accelerate maritime growth. This will unlock opportunities for innovation, investment, and inclusive development across the sector." With this milestone, SMFCL is set to provide a more focused and accessible financial ecosystem for India's maritime growth, enabling projects that contribute to sustainable development, innovation, and national logistics efficiency.
