Government plans Rs 20,000 crore guarantee fund to boost infra projects
The government plans to set up a Rs 20,000-crore risk guarantee fund for the infrastructure sector to boost investments, people privy to the development said. It is in talks with stakeholders, including public and private financial institutions, for the proposed fund that will cover losses caused by policy uncertainty and other non-commercial reasons, they said.
The fund is expected to increase credit flow into big infrastructure projects by encouraging lenders to take larger exposures. Managed by National Credit Guarantee Trustee Company, it will underwrite development risks of new projects.
