India Plans Rs 2 Billion Fund to Boost Infrastructure Finance
ECONOMY & POLICY

India Plans Rs 2 Billion Fund to Boost Infrastructure Finance

India’s ambitious push for large-scale infrastructure growth may soon get a major financing cushion. The government is working on a plan to launch a Rs 2 billion risk guarantee fund aimed at reducing uncertainty for investors and developers, according to a report.
The fund is designed to give confidence to lenders and private players by covering risks that go beyond commercial considerations. The proposed fund will primarily address losses that arise due to factors such as policy changes, land acquisition delays, or environmental clearances. It will not cover commercial risks but will protect project developers from uncertainties outside their control. The move is expected to encourage banks and financial institutions to increase credit exposure to new infrastructure projects, the news report said.
The National Credit Guarantee Trustee Company (NCGTC) is likely to manage the facility. Once operational, it will underwrite development risks and enable smoother project financing. Talks are currently underway with both public and private sector financial institutions. The government will provide the initial funding for the scheme. Meanwhile, the National Bank for Financing Infrastructure and Development (NaBFID) has been tasked with submitting its recommendations within two weeks, the news report said.
India’s infrastructure development demands massive funding — estimated at $4.5 trillion by 2040 — to sustain economic growth. For 2025-26, the Centre has already set aside Rs 1.1 trillion, or 3.1 per cent of GDP, as capital expenditure.
In this context, the Ministry of Finance has been holding meetings with stakeholders to explore innovative financing solutions. On Thursday, financial services secretary M Nagaraju chaired discussions on addressing bottlenecks in infrastructure funding, including the proposed guarantee mechanism.

India’s ambitious push for large-scale infrastructure growth may soon get a major financing cushion. The government is working on a plan to launch a Rs 2 billion risk guarantee fund aimed at reducing uncertainty for investors and developers, according to a report.The fund is designed to give confidence to lenders and private players by covering risks that go beyond commercial considerations. The proposed fund will primarily address losses that arise due to factors such as policy changes, land acquisition delays, or environmental clearances. It will not cover commercial risks but will protect project developers from uncertainties outside their control. The move is expected to encourage banks and financial institutions to increase credit exposure to new infrastructure projects, the news report said.The National Credit Guarantee Trustee Company (NCGTC) is likely to manage the facility. Once operational, it will underwrite development risks and enable smoother project financing. Talks are currently underway with both public and private sector financial institutions. The government will provide the initial funding for the scheme. Meanwhile, the National Bank for Financing Infrastructure and Development (NaBFID) has been tasked with submitting its recommendations within two weeks, the news report said.India’s infrastructure development demands massive funding — estimated at $4.5 trillion by 2040 — to sustain economic growth. For 2025-26, the Centre has already set aside Rs 1.1 trillion, or 3.1 per cent of GDP, as capital expenditure.In this context, the Ministry of Finance has been holding meetings with stakeholders to explore innovative financing solutions. On Thursday, financial services secretary M Nagaraju chaired discussions on addressing bottlenecks in infrastructure funding, including the proposed guarantee mechanism.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement