Under the Sagarmala initiative, a non-banking financing company is being planned to fund the shipping and shipbuilding sectors. The Shipping Ministry has set rolling the proposal which is being deliberated by the Finance Ministry. In addition, the financial institution will also need approval from the RBI. The Shipping Ministry officials expect all the approvals to be in place by the year end and the NBFC could be functional by December 2024. The institution will particularly meet the financing needs of shipping companies and shipyards who often find it difficult to garner funds from banks. The NBFC is expected to raise funding from the corporate bond market, offering a competitive financing option to the maritime sector.
