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Context:

The Union Minister of Ports, Shipping & Waterways, inaugurated the Sagarmala Finance Corporation Limited (SMFCL), India's first Non-Banking Financial Company (NBFC) dedicated exclusively to the maritime sector.

About Sagarmala Finance Corporation Limited (SMFCL)

It was formerly known as the Sagarmala Development Company Limited, is a Mini Ratna, Category-I, Central Public Sector Enterprise (CPSE) under the Ministry of Ports, Shipping & Waterways. It was officially registered as an NBFC by the Reserve Bank of India (RBI).

Objective => To bridge critical financing gaps within the maritime industry. Traditional financial institutions usually lack the specialized knowledge to evaluate the unique risks and requirements of maritime projects. SMFCL is designed to overcome this hurdle by providing focused and accessible financial solutions.  

Key Functions and Beneficiaries

Financial Offerings => Provide a range of financial products, including short, medium, and long-term funding, customized to the needs of the sector.  

Target Beneficiaries => SMFCL aims to empower a diverse group of stakeholders, including:

• Port authorities and shipping companies
• Shipbuilding and logistics firms
• Micro, Small, and Medium Enterprises (MSMEs) and startups
• Operators of barges, cruise ships, and fishing vessels
• Maritime educational and research institutions

Significance

Alignment with National Goals => The initiative aligned with the Maritime Amrit Kaal Vision 2047, a blueprint for developing world-class ports and promoting a sustainable maritime sector. It directly contributes to the overarching goal of "Viksit Bharat" (Developed India) by strengthening a key pillar of the economy.

Boosting Key Sectors => Beyond traditional port and shipping infrastructure, SMFCL's mandate includes supporting strategic growth areas such as:

• Shipbuilding
• Cruise tourism
• Renewable energy projects in the maritime space
• Maritime education and skill development

By providing a dedicated financial ecosystem, SMFCL is expected to unlock new opportunities for investment, promote innovation, and improve national logistics efficiency.

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Source: 

PIB