Copyright indiatimes
Domestic avenues for long-term financing of ports and shipping assets need to evolve for the sector to grow in the country, according to industry representatives. Speaking at the sidelines of the India Maritime Week 2025, ship owners raised concerns about the reluctance of bankers to lend for their purchases while port infrastructure developers called for 30-50 year debt instruments for appropriately financing requirements."There are no viable long-term financing options readily available for port infrastructure development," the finance head of a large private port terminal operator told ET on condition of anonymity. "Even infrastructure bonds tend to mature in 15-years," the official said, adding that bank loans at high interest rates are the only avenue in most cases. Maritime India Vision 2030 envisages ₹3-3.5 lakh crore of investments across ports, shipping, and inland waterways.To address the industry's concerns, the Centre has launched a ₹25,000-crore Maritime Development Fund (MDF), besides incentives for shipbuilding and shipyard development.Live Events"National Bank for Financing Infrastructure and Development (NaBFID) is likely to be roped in for operationalising the MDF," a senior government official said, adding guidelines are likely to be issued in the coming months.NaBFID was set up in April 2021 as a development finance institution (DFI). It is tasked with supporting development of long-term infrastructure financing and related markets in the country. Besides MDF, more government-backed financing institutions have been lending for port infrastructure development. Sagarmala Finance Corporation (SMFC) and Housing and Urban Development Corporation (Hudco) have signed an agreement to finance ₹80,000 crore over the next decade to eligible public and private projects under the Sagarmala programme. This aims to enhance port-led development, reduce logistics costs, and boost India's maritime competitiveness.Hudco, a Navratna, has also signed four memoranda of understanding (MoUs) with major port authorities to finance projects in India's port infrastructure sector.The Centre recently allowed using large ships as collateral for loans. This move is in line with efforts to boost capital availability for players engaged in maritime transport."Despite the government push, bankers tend to shy away from lending for buying vessels," a representative of a large shipping company said.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onMaritime Infrastructure FinancingPort Infrastructure DevelopmentNational Bank for Financing Infrastructure and DevelopmentMaritime Development Fundhousing and urban development corporation (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onMaritime Infrastructure FinancingPort Infrastructure DevelopmentNational Bank for Financing Infrastructure and DevelopmentMaritime Development Fundhousing and urban development corporation(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
