Pillar 2 — ₹25,000 Cr
Maritime Development Fund
A blended-finance vehicle for long-term capital deployment across shipbuilding, port modernisation and green shipping - budgetary support from FY2026 to FY2036.
Overview
Priority Sectors - min. 50% (target 70%) of corpus
Shipbuilding & shipbuilding clusters, ship repair, ship ownership & tonnage acquisition, port expansion, inland waterways terminals, coastal & international shipping
Other Sectors - up to 50% of corpus
Multi-Modal Logistics Parks (MMLPs), maritime connectivity, ancillary manufacturing & services. Overseas capped at 10% of corpus, for technology & innovation only
Maritime Investment Fund (MIF)
₹20,000 Cr
Fund corpus
An expanded corpus of up to ₹70,000 Cr is reportedly under consideration
- Long-term capital for shipbuilding, port modernisation & green shipping
- Blended-finance equity fund - closed-end Category I/II AIF
- Junior tranche (concessional) absorbed by GoI; senior tranche open to commercial/institutional investors
- 49% public : 51% private blended structure
- Equity instruments only, for growth & expansion; fund retains flexibility to select instruments
Interest Incentivization Fund (IIF)
₹5,000 Cr
Fund corpus
- Interest incentive of up to 3%
- Offered to banks & financial institutions
- Applicable on loans extended to Indian shipyards
- Reduces the cost of debt financing for shipbuilding projects
Policy Instruments
GoI's contribution is held and managed by SMFCL in a fiduciary capacity within an Alternative Investment Fund (AIF) structure. The Fund is restricted to equity instruments to support growth and expansion, while retaining flexibility in selecting specific instruments within that mandate.
Key Milestones Since Launch
24 Sep 2025
MDF approved by Cabinet
13 Oct 2025
Governing Council (GC) constituted
SMFCL appointed as Implementing Agency for IIF
18 Dec 2025
1st meeting of the Governing Council
19 Feb 2026
RFP issued for Fund Manager selection (MIF)
20 Feb 2026
MDF (MIF & IIF) guidelines issued
With the concurrence of the Department of Economic Affairs (DEA)
5 Mar 2026
Pre-bid meeting on the Fund Manager RFP
15 Apr 2026
Fund Manager appointed for MIF · IIF portal created
19 May 2026
SBI Ventures appointed as Fund Manager for MIF