Context:

• The Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, inaugurated India’s first Non-Banking Financial Company (NBFC) for the maritime sector — Sagarmala Finance Corporation Limited (SMFCL).

Key Highlights:

• Key dignitaries at the inauguration: Union Minister of State for Water Resources Shantanu Thakur and Secretary for Water Resources T.K. Ramachandran.
• This initiative is a significant step towards the vision of "Viksit Bharat" (Developed India) and the Maritime Amrit Kaal Vision 2047.
• SMFCL was officially registered as an NBFC by the Reserve Bank of India (RBI) on 19 June 2025, and has been granted the status of a Miniratna, Category-I, Central Public Sector Enterprise (CPSE).

Objective and Scope:

• The primary objective of SMFCL is to bridge financial gaps in the maritime sector and provide sector-specific financial solutions.
• It will offer short, medium, and long-term loans to:

• • Port authorities
  • Shipping companies
  • MSMEs & Startups
  • Shipbuilding
  • Logistics
  • Cruise tourism
  • Renewable energy
  • Fisheries
  • Maritime education & research institutes
• SMFCL will offer customized financial products to cater to the diverse needs of the maritime industry.

Sagarmala Finance Corporation Limited (SMFCL) – Key Facts:

• Established: August 2016 (under Companies Act, 2013)
• Previous Name: Sagarmala Development Company Limited (SDCL)
• Current Name: Sagarmala Finance Corporation Limited (SMFCL)
• Registered as NBFC: 19 June 2025 by RBI
• Status: Miniratna, Category-I CPSE
• Administrative Control: Ministry of Ports, Shipping and Waterways
• Management: Includes senior officials from the Ports Department
• Chairman: T.K. Ramachandran, Secretary, Ministry of Ports, Shipping and Waterways

Sagarmala Programme :

• Ministry:Implemented by the Ministry of Ports, Shipping and Waterways
• Launch: March 2015

Objective:

• To accelerate India's economic development by utilizing 7,500 km of coastline and approximately 14,500 km of navigable waterways.
• Reduce logistics costs for domestic transport and import-export cargo.

Key Pillars:

1. Port Modernization & Development: Upgradation, mechanization, and development of new greenfield ports.
2. Port Connectivity Enhancement: Integration with road, rail, inland waterways, and multimodal logistics.
3. Port-led Industrialization: Development of industrial clusters and Coastal Economic Zones near ports.
4. Coastal Community Development: Skill development, fisheries, tourism, and livelihood enhancement.
5. Promotion of Coastal and Inland Water Transport: Emphasizing environmentally friendly transportation.

Non-Banking Financial Company (NBFC) – General Overview:

Definition:

• NBFCs are financial institutions registered under the Companies Act, 1956 or 2013, that provide financial services such as:
  • Loans and advances
  • Investments in securities (shares, bonds, debentures, etc.)
  • Leasing, hire-purchase
  • Insurance and chit funds
  • However, NBFCs are not full-fledged banks.

Difference Between Banks and NBFCs:

Regulated By:

• Reserve Bank of India (RBI)

Types of NBFCs in India:

• Loan Companies (LC)
• Investment Companies (IC)
• Asset Finance Companies (AFC)
• Infrastructure Finance Companies (IFC)
• Micro Finance Institutions (MFI)
• Core Investment Companies (CIC)
• Housing Finance Companies (HFC)

Major NBFCs in India:

• Bajaj Finance Ltd
• Mahindra & Mahindra Financial Services
• Manappuram Finance
• Shriram Transport Finance