The Indian government is finalising a ₹20,000 crore guarantee fund to reduce risks in infrastructure investments.
The fund will shield investors from losses linked to land delays, policy hurdles, and non-commercial risks.
It will be supported by both public and private financial institutions, ensuring shared responsibility.
Officials believe this safety net will help unlock large-scale capital in roads, energy, and logistics
projects.
Infrastructure remains central to India’s growth ambitions, but investor concerns often slow execution.
The guarantee model is expected to reassure long-term funds, especially sovereign wealth and pension in
vestors.
Policymakers argue this aligns with the government’s wider ease-of-doing-business reforms.
Critics, however, stress the need for strict eligibility criteria to avoid misuse of publi
c guarantees.
Faster disbursals and transparent monitoring will be key to building credibility for the mechanism.
If implemented well, the fund could accelerate India’s infrastructure pipeline and attract record F
DI.