The deadline for suggestions from the National Bank for Financing Infrastructure and Development (NaBFID) is two weeks.
According to the Economic Times, the government is preparing plans to establish a risk assurance fund for the infrastructure industry worth Rs 20,000 crore in order to attract investment.
As to the article, the National Credit Guarantee Trustee Company would oversee the fund, which will compensate for losses resulting from policy uncertainty and other non-commercial risks. This will incentivize lenders to provide greater loans for major projects.
The article states that the fund would only concentrate on new infrastructure projects, with the government providing the first capital. It will insure against development risks including delays, overspending, and interruptions caused by environmental clearances or land acquisition.
The deadline for suggestions from the National Bank for Financing Infrastructure and Development (NaBFID) is two weeks. According to a senior bank executive who spoke to ET, NaBFID will look at things like the grounds for triggering guarantees, the distribution of risk premiums between authorities and developers, and measures to assure responsibility.
India has to spend an estimated $4.5 trillion by 2040 in infrastructure development to maintain current growth. The Center has allocated Rs 11.21 lakh crore, or 3.1% of GDP, for capital expenditures in current fiscal year.
Financial services secretary M Nagaraju convened a review meeting this week to explore sectoral funding difficulties, according to a statement from the finance ministry.