India Plans Rs 200 Billion Risk Fund to Boost Infrastructure

16 Sep 2025 CW Team

India’s ambitious push for large-scale infrastructure growth is set to receive a major financing boost. The government is reportedly planning a Rs 200 billion risk guarantee fund to reduce uncertainty for investors and project developers.

The fund aims to instil confidence among lenders and private players by covering risks beyond commercial considerations. It will primarily address losses arising from policy changes, land acquisition delays, or environmental clearances, while commercial risks will remain the responsibility of developers. This measure is expected to encourage banks and financial institutions to expand credit exposure to new infrastructure projects.

The National Credit Guarantee Trustee Company (NCGTC) is likely to manage the facility, underwriting development risks to enable smoother project financing. Talks are ongoing with public and private financial institutions, with the government providing initial funding. The National Bank for Financing Infrastructure and Development (NaBFID) has been tasked with submitting its recommendations within two weeks.

India’s infrastructure development requires substantial funding — estimated at $4.5 trillion by 2040 — to sustain economic growth. For 2025-26, the Centre has already allocated Rs 1,121 billion, equivalent to 3.1 per cent of GDP, for capital expenditure.

In this context, the Ministry of Finance has been consulting stakeholders to explore innovative financing solutions. On Thursday, Financial Services Secretary M. Nagaraju chaired discussions on addressing infrastructure funding bottlenecks, including the proposed guarantee mechanism.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..