Overview

• Media reports citing government sources say a proposal is under consideration to set up a Rs 20,000 crore risk guarantee fund for infrastructure.
• The facility is likely to be managed by the National Credit Guarantee Trustee Company (NCGTC) and would underwrite development risk on new projects.
• Coverage would include losses from policy uncertainty and other non-commercial risks to encourage lenders to finance larger projects.
• Design discussions include requiring a minimum equity stake from developers and charging risk-based premiums as safeguards.
• The push comes against the National Infrastructure Pipeline’s estimate that India needs about USD 4.51 trillion in infrastructure spending by 2030.