Brief Context
In News The Union Minister of Ports, Shipping Waterways (MoPSW) inaugurated Sagarmala Finance Corporation Limited (SMFCL). Sagarmala Finance Corporation Limited (SMFCL) It was formerly known as Sagarmala Development Company Limited. It is a Mini Ratna, Category-I, Central Public Sector Enterprise and has been formally registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI) .
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Syllabus :GS3/Economy
In News
- The Union Minister of Ports, Shipping & Waterways (MoPSW) inaugurated Sagarmala Finance Corporation Limited (SMFCL).
Sagarmala Finance Corporation Limited (SMFCL)
- It was formerly known as Sagarmala Development Company Limited.
- It is a Mini Ratna, Category-I, Central Public Sector Enterprise and has been formally registered as a Non-Banking Financial Company (NBFC) with the Reserve Bank of India (RBI) .
- It is India’s first NBFC in the maritime sector.
| Do you know? – A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 or 2013 – It is primarily engaged in financial activities like loans, advances, and investments in securities. – It excludes companies whose main business is agriculture, industry, trade in goods or services, or real estate. 1. Companies that collect deposits under various schemes are classified as Residuary NBFCs. – Banks and NBFCs differ in key ways despite both engaging in lending and investments: 1. NBFCs cannot accept demand deposits. 2. NBFCs are not part of the payment and settlement system and cannot issue cheques. 3. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to depositors of deposit taking NBFCs. |
Importance of SMFCL
- It is aligned with the Maritime Amrit Kaal Vision 2047 and aims to bridge financing gaps and offer tailored financial solutions for ports, MSMEs, startups, and maritime institutions.
- It will support strategic areas like shipbuilding, renewable energy, cruise tourism, and maritime education, helping to drive economic growth and logistics efficiency.
- The launch marks a key step in making India a global maritime power, creating a dedicated financial ecosystem for inclusive and sustainable maritime development.
| India’s maritime sector – It is crucial to its trade, handling 95% of trade by volume and 70% by value. – The Ministry of Ports, Shipping & Waterways oversees the sector, which includes 12 major and 200+ minor ports. – In FY24, ports handled 818 million tonnes of cargo, up 4.45% from FY23. The government supports the sector with 100% FDI and tax incentives. – The Amrit Kaal Vision 2047 builds on Maritime India Vision 2030 to globalize ports, enhance inland/coastal shipping, and promote sustainability. – SAGAR SETU Platform was launched by the Ministry of Ports, Shipping and Waterways (MoPSW) in June 2025 to revolutionize maritime and logistics operations. – India also plans a new shipping company to expand its fleet by 1,000 ships, aiming to cut foreign freight costs by a third by 2047. |
Source: TH