India’s Ministry of Port, Shipping, and Waterways (MoPSW) is transforming the Sagarmala Development Company Ltd. (SDCL) into a non-banking financial company (NBFC) to finance marine projects domestically and internationally. SDCL has applied for a Certificate of Registration from the Reserve Bank of India (RBI), and Union Minister Sarbananda Sonowal expects this certification by the end of the month. As a Type-II NBFC, SDCL will fund suitable maritime sector projects, including shipping and lease financing.
Type-II NBFCs have a client interface and can accept public funds, distinguishing them from Type-I NBFCs. Following its registration, SDCL plans to tap into diverse funding sources and will focus on leasing and providing debt for marine enterprises. SDCL will manage financial strategies for port-led development projects abroad as part of the Bharat Global Ports Consortium.
Currently, SDCL is enhancing existing port infrastructure and developing new ports and connectivity. Its equity contributions in project special purpose vehicles will generally not exceed 49%, depending on project assessments. The SDCL Board of Directors includes Shipping Secretary TK Ramachandran as Chairman.
