The Centre is exploring a Rs 20,000 crore Risk Guarantee Fund to boost private investment in infrastructure by mitigating project risks. The fund, likely managed by NCGTC, would underwrite development risks and cover non-commercial losses.

Officials said it could enhance bankability and encourage lenders to extend higher credit to large projects. India needs an estimated USD 4.51 trillion (Rs 390 lakh crore) in infrastructure spending by 2030 to sustain growth, as per the National Infrastructure Pipeline.

Experts noted that inadequate infrastructure continues to cost India nearly 4–5 per cent of GDP in inefficiencies.