Finance Minister Nirmala Sitharaman proposed a substantial hike in public capital expenditure to ₹12.2 lakh crore for FY 2026-27, up from ₹11.2 lakh crore in BE 2025-26 and a manifold increase from ₹2 lakh crore in 2014-15. This ambitious allocation sustains infrastructure momentum, driving economic growth and job creation nationwide.
Infrastructure Risk Guarantee Fund
To bolster private developer confidence during construction phases, the FM announced an Infrastructure Risk Guarantee Fund offering prudentially calibrated public credit guarantees to lenders. This innovative mechanism mitigates risks, accelerates project timelines, and unlocks stalled infrastructure initiatives critical for national development.
Accelerated Asset Monetization via REITs
Recognizing Real Estate Investment Trusts (REITs) as proven tools for recycling assets, dedicated REITs will fast-track monetization of significant Central Public Sector Enterprises (CPSE) real estate holdings. This strategy generates fresh capital for reinvestment while broadening retail investor participation in premium infrastructure assets.
Green Freight Corridors Initiative
Promoting sustainable cargo movement, two new dedicated freight corridors will link Dangkuni in the east to Surat, slashing emissions and logistics costs. These corridors enhance rail efficiency, support manufacturing hubs, and align with environmental sustainability goals for a cleaner transport ecosystem.
