Budget may pitch ₹25,000 cr risk guarantee fund for infra

The Centre is working on a ₹25,000-crore safety net for infrastructure projects to ease financing bottlenecks and revive stalled projects, two people familiar with the plans said.

- Subhash Narayan

The fund, proposed on the lines of credit guarantee schemes for small businesses, may be announced in the Union budget for fiscal year 2027 (FY27).

The proposal was submitted to the finance ministry by a committee formed under the National Bank for Financing Infrastructure and Development (NaBFID), the people cited above said on the condition of anonymity. The National Credit Guarantee Trustee Co. (NCGTC) is likely to underwrite development risks for infrastructure projects, allowing banks and financial institutions to lend on easier terms.