Centre plans risk guarantee fund for infrastructure sector

The central government is planning to set up a Rs 200 billion risk guarantee fund for the infrastructure sector. The proposed fund will cover losses arising from policy uncertainty and other non-commercial risks. It is expected to boost credit flow into key infrastructure projects by encouraging lenders to take larger exposure. The government is currently in discussions with stakeholders, including public and private financial institutions. These discussions are currently in preliminary stages. The National Bank for Financing Infrastructure and Development (NaBFID) is expected to submit its recommendations for the proposed fund in the coming weeks.