Centre moots NBFC under Sagarmala to tide over shipping woes
shipping ministry has proposed to launch a non-banking finance company (NBFC) under its Sagarmala initiative to meet the financing needs of the shipping and shipyard sectors, two senior officials familiar with the matter said.
The finance ministry is currently evaluating the proposal, the officials from the shipping ministry told ET. The non-bank lender will also need Reserve Bank of India clearance to carry out lending. The officials expect the shipping ministry to get all the necessary approvals and launch the new NBFC by December.
It will act as a specialist lender to shipping companies and shipyards that often find it difficult to get bank loans, they said, asking not to be named.
The officials did not disclose the likely shareholding structure of the proposed NBFC. It will be established «independently» and its specific structure will be determined after Sagarmala obtains the approvals, they said.
The NBFC is expected to raise funds from banks and the corporate bond market to on-lend.
«Our goal is to offer competitive financing options to the shipping and shipyard sectors,» one of the officials said.
'Financing constrained for segment'
«In the current economic climate, access to debt financing, particularly for the shipping and shipyard industries, is limited,» said the official. «Based on our recent interactions with the sector, we've found that the shipping and shipyard industry currently lacks infrastructure status, and financing is quite constrained for that segment. Therefore, sectoral non-banking
