The Indian government has appointed SBI Ventures, formerly known as SBICAP Ventures, as the fund manager for the ₹20,000-crore Maritime Investment Fund (MIF). This fund is designed to attract capital for the maritime sector by managing and overseeing its investment portfolio. A formal mandate for SBI Ventures is expected shortly, which is anticipated to significantly enhance funding opportunities within the industry. SBI Ventures was chosen after a bidding process, where the only other competitor was a consortium of the Indian Infrastructure Finance Company and Climate Fund Managers.
SBI Ventures, a wholly-owned subsidiary of the State Bank of India, manages approximately ₹30,000 crores (around $3.5 billion) in assets. It also serves as the investment manager for various funds, including the Neev Funds and SWAMIH Investment Fund. The MIF is a crucial part of the ₹25,000 crore Maritime Development Fund approved by the Union Cabinet last year. The government will contribute 49% equity, amounting to ₹9,800 crore, with the remaining 51% sourced from private investors, sovereign wealth funds, and public sector enterprises.
The MIF will be established as a trust under the Indian Trusts Act, 1882, and registered as a closed-end Category I/II Alternative Investment Fund with the Securities and Exchange Board of India (SEBI). It may consist of multiple funds targeting specific maritime sub-sectors, and could potentially include feeder funds in the International Financial Services Centres Authority (IFSCA) GIFT City to attract global investment. The fund aims to ensure that the government’s equity commitment does not exceed 49% at any closing phase, with the first close expected within 12 months of SEBI registration.
