India's Public Capex Soars 5x in Decade, New Infra Funds Unveiled

Institutions such as the National Investment and Infrastructure Fund (NIIF) and the National Bank for Financing Infrastructure and Development (NaBFID) have mobilised billions in global and domestic capital, strengthening governance and long‑term financing flows, an official statement said.

To address challenges in early-stage project construction & development risks, delays, and uncertainty in execution, the government introduced the Infrastructure Risk Guarantee Fund. This fund will provide partial guarantees to lenders, reducing default risks for private developers and making financing more secure.

Further, to amplify the potential of urban centres, the Union Budget 2026-27 introduced the concept of City Economic Regions (CERs) and proposed Rs 5,000 crore per CER over five years.

Asset monetisation through Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) has unlocked over Rs 1.5 lakh crore, recycling funds into new projects and attracting global investors.

Over the past decade, India has consistently prioritized large-scale investment in infrastructure as a driver of inclusive progress and competitiveness, with the World Bank ranking it among the top five low and middle-income economies for job creation in infrastructure, the government said.

NIIF manages $4.9 billion in assets under management and creates scalable platforms in transportation, energy, and digital infrastructure, either through its own management teams or by partnering with experienced operators.

NaBFID addresses gaps in long-term non-recourse finance, supports bond and derivatives market development, and fosters sustainable economic growth. The bank has sanctioned about Rs 3.03 lakh crore and disbursed roughly Rs 1.09 lakh crore to core infrastructure and social sectors till December 2025.

The Union Budget 2026-27 has announced the creation of dedicated REITs for Central Public Sector Enterprises (CPSEs) to accelerate monetisation of government-owned real estate assets.

- IANS