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New investment funds to get capital early in FY26
Mint Mumbai
|February 21, 2025
Front-loading capital allocation to the new funds aimed to kick off investments
The Centre will front-load capital support for the new funds announced in the Union budget to quicken investments and energize the economy, two people aware of the plans said.
The money will be provided in the first half of FY26, the people said, adding that since some of the funds will be run in partnership with the private sector, infusing money early will also encourage greater participation. The ₹25,000 crore Maritime Development Fund (MDF), for instance, will have 49% government contribution and 51% private.
The Union budget also announced a new ₹10,000 crore fund of funds (FoFs) for startups, and a ₹1 trillion Urban Challenge Fund with ₹10,000 crore allocated for FY26 to support city redevelopment. The government is also planning another FoF for deep tech companies.
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