Union Budget Proposes Infra Risk Guarantee Fund to Boost Real Estate, Construction

• Union Finance Minister Nirmala Sitharaman proposed an Infrastructure Risk Guarantee Fund in the Union Budget 2026-27.
• The fund aims to provide partial credit guarantees to lenders, de-risking real estate and construction projects during development.
• Industry leaders like Parveen Jain (NAREDCO) and Nikhil Hawelia (CREDAI) believe it will enhance lender confidence and facilitate project financing.
• It targets reducing risk perception, a major hurdle for large real estate, urban infrastructure, and construction projects.
• Experts suggest the fund will accelerate project timelines, improve asset quality, and encourage private investment, especially in tier-2 and tier-3 cities.

Why It Matters: The Infrastructure Risk Guarantee Fund will de-risk projects, boost lender confidence, and accelerate real estate development.