India Eyes ₹25,000 Cr Risk Fund for Stalled Infra Projects in Budget FY27

• Central government plans a new ₹25,000 crore special risk guarantee fund in Union Budget FY27 to unblock stalled infrastructure projects.
• The fund aims to reduce banks' reluctance to finance large projects by providing guarantees against development risks.
• NCGTC will offer guarantees, assuring banks and NBFCs, potentially leading to more flexible loan terms and increased credit flow.
• India needs $2.2 trillion in infra investment by 2030; current projects face delays and funding bottlenecks, exemplified by 574 delayed National Highway projects.
• Experts believe a well-designed fund, especially under PPP, can be a strong credit enhancer, boosting growth.

Why It Matters: New ₹25,000 Cr risk fund aims to unlock infra financing, boost stalled projects, and accelerate India's economic growth.