Context
- SBI-backed Sagarmala Finance Corporation, India’s first maritime lender, plans to launch India’s first blue bond. The proposed bond aims to mobilise funds for projects related to the sustainable use and conservation of ocean resources.
What is a Blue Bond?
- A blue bond is a debt instrument that raises funds specifically for marine and ocean-related sustainable activities.
- Like a green bond, but focused on the sustainable management of water and marine resources.
- Funds may support clean water, marine ecosystem protection, sustainable fisheries, ocean energy, and marine mapping.
Significance of the Blue Bond
- Mobilises Finance: Raises long-term funds for marine and ocean-related sustainable projects.
- Protects Oceans: Supports marine ecosystems, sustainable fisheries and ocean conservation.
- Improves Water Management: Funds clean water, coastal resilience and related infrastructure.
- Promotes Sustainable Development: Supports ocean energy and sustainable use of marine resources.
- Expands Sustainable Finance: Diversifies the green finance market into water and marine sectors.
About Sagarmala Finance Corporation Limited
- Established: Formerly Sagarmala Development Company Limited; restructured as Sagarmala Finance Corporation Limited (SMFCL) in June 2025.
- India’s First Maritime NBFC: Registered with the Reserve Bank of India as India’s first maritime-focused Non-Banking Financial Company.
- Purpose: Bridges financing gaps in ports, shipping infrastructure and related maritime industries.
- Financing: Provides short-, medium- and long-term finance to ports, shipping companies, small businesses, startups and maritime institutions.
- Strategic Sectors: Also supports shipbuilding, renewable energy, cruise tourism and maritime education, aligned with India’s maritime development goals.
Q. With reference to the recently proposed Blue Bond, consider the following statements:
I. It is being launched by the Sagarmala Finance Corporation Limited (SMFCL), which is registered with the RBI as India's first maritime-focused Non-Banking Financial Company (NBFC).
II. Funds raised through a Blue Bond can be utilised only for generating ocean-based renewable energy.
III. SMFCL was earlier known as the Sagarmala Development Company Limited before its restructuring in June 2025.
Which of the statements given above is/are correct?
(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III
Answer: (c). I and III only
Explanation
Statement I is Correct: SMFCL is described as India's first maritime lender and is registered with the RBI as the country's first maritime-focused NBFC, bridging financing gaps in ports, shipping and related infrastructure.
Statement II is Incorrect: A Blue Bond's proceeds are not restricted to ocean energy alone — they can support a wider basket of activities including clean water, marine ecosystem protection, sustainable fisheries, ocean energy, and marine mapping. Ocean energy is only one of several eligible uses, making the statement's exclusivity claim wrong.
Statement III is Correct: SMFCL was formerly the Sagarmala Development Company Limited and was restructured into its present form, Sagarmala Finance Corporation Limited, in June 2025.