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Govt mulls ₹20K cr risk guarantee fund for infra growth

Mint Bangalore

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October 03, 2025

The government is considering a proposal for creation of a ₹20,000 crore risk guarantee fund for the infrastructure sector to push investment by the private sector.

- PTI

The establishment of a risk guarantee fund for the infrastructure sector is expected to attract private sector investment by sharing project risks, thereby reducing the burden on project developers, sources said.

The fund with initial corpus of ₹20,000 crore may be managed by National Credit Guarantee Trustee Company Limited, sources said, adding, the fund would underwrite development risk of a new project.

Besides, there should be additional safeguards by way of a minimum stake by the developer and risk-based premiums may be charged.

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