By Martin Shwenk Leade
Copyright indiatimes
The government is exploring a proposal to create a Rs 20,000 crore risk guarantee fund aimed at attracting private sector investment in India’s infrastructure sector, PTI reported citing sources. The fund is expected to underwrite project risks, easing the burden on developers and encouraging larger investments.The proposed fund would likely be managed by the National Credit Guarantee Trustee Company Limited (NCGTC). It would cover losses arising from policy uncertainty and other non-commercial risks, enabling lenders to extend bigger loans for large-scale projects.“Besides, there should be additional safeguards by way of a minimum stake by the developer and risk-based premiums may be charged,” sources told PTI.For the fund to succeed, they added, its guarantee must be bankable, with timely assurance of payments.The move comes as India plans to spend an estimated USD 4.51 trillion (around Rs 390 lakh crore) on infrastructure by 2030 to achieve the vision of a USD 5 trillion economy by 2025. According to the National Infrastructure Pipeline report, weak infrastructure remains one of the biggest hurdles to India’s growth ambitions.Live Events“Infrastructure development can not only help remove some of these inefficiencies contributing immediately to economic expansion, but also support stronger long-term growth,” the report said.Creating new and upgrading existing infrastructure is considered crucial for raising India’s competitiveness. “It will be especially critical for the success of the Make in India programme as manufacturing competitiveness critically depends on infrastructure,” the report added.Experts have noted that failing to close the infrastructure gap can hamper corporate growth and investments, with inefficiencies costing the economy 4-5 per cent of GDP, the report noted.The Rs 20,000 crore risk guarantee fund is designed to mitigate such challenges and incentivize private participation by sharing risks, helping India accelerate infrastructure development in line with its long-term economic goals.Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onprivate sector infrastructure indianational credit guarantee trustee companyncgtc infrastructure fundmake in india infrastructureinfrastructure project risk coverageindia infrastructure growth 2025government infrastructure funding indiainfrastructure development indiaindia infrastructure investment
(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
(You can now subscribe to our Economic Times WhatsApp channel)Read More News onprivate sector infrastructure indianational credit guarantee trustee companyncgtc infrastructure fundmake in india infrastructureinfrastructure project risk coverageindia infrastructure growth 2025government infrastructure funding indiainfrastructure development indiaindia infrastructure investment(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition123View all Stories
