Lok Sabha Question No. 413 (UNSTARRED), answered on 2026-02-02
Subject: Development of Debt Markets for Infrastructure Financing
Ministry: FINANCE
Asked by: Shri Rao Rajendra Singh

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 413

Answered on Monday, February 02, 2026 / Magha 13, 1947 (Saka)

## Development of Debt Markets for Infrastructure Financing

413. Shri Rao Rajendra Singh:

Will the Minister of FINANCE be pleased to state:

- (a) the steps taken/being taken by the Government to strengthen India's debt markets and enhance their role in meeting long-term infrastructure financing needs;
- (b) the goals envisaged while establishing National Bank for Financing Infrastructure and Development (NaBFID) and the progress made in achieving the same;
- (c) whether the Government proposes to introduce policy or regulatory measures to facilitate a more market-driven and diversified ecosystem for infrastructure financing; and
- (d) if so, the details thereof?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

- (a) The Government has taken a range of measures to deepen India's debt markets and strengthen their role in long-term infrastructure financing, including enabling targeted incentives in public debt issues for specified investor categories (such as women,  senior  citizens,  armed  forces  personnel  and  retail  investors),  easing compliance  requirements  for  debt  issuers  (including  rationalising  requirements applicable to high-value listed debt entities and enabling digital dissemination of annual  reports),  and  refining  the  Electronic  Book  Provider  (EBP)  framework  to improve  transparency,  efficiency  and  price  discovery  in  private  placements. Frameworks  have  also  been  put  in place for Environmental, Social  and Governance (ESG) debt securities (green, social, sustainability and sustainabilitylinked bonds)  to expand  avenues  for  financing eligible green  and  social infrastructure.  Measures  for  streamlining  regulatory  norms and  facilitating  wider investor  participation  have  also  been  taken  to  strengthen  InvITs  for  asset monetisation and capital recycling.
- (b) NaBFID has both financial and developmental objectives under its Act. As on 31 December 2025, it has accorded cumulative sanctions of ~₹3.0 3 lakh crore and cumulative  disbursements  of  ~₹1.09  lakh  crore  across  core  infrastructure  and social/commercial sectors, and has advanced its developmental mandate through the launch of a Partial Credit Enhancement (PCE) product to widen the investor base, PPP transaction advisory to build a bankable pipeline, setting up of a GIFT City investment arm to crowd-in foreign capital, expansion of urban infrastructure financing (including ₹520 crore investment in municipal bonds), strengthened MDB partnerships, and engagement with State Governments on asset monetisation with NaBFID as an anchor investor in proposed InvITs.
- (c) & (d) The Government is taking policy and regulatory measures on an ongoing basis  to  enable  a  more  market-driven  and  diversified  infrastructure  financing ecosystem by strengthening project bankability, deepening capital markets, and de-risking  long-term  investors.  This  includes  targeted  support  for  Public-Private Partnerships  through  Viability  Gap  Funding,  enabling  frameworks  for  marketbased instruments such as Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) and Infrastructure Debt Fund -Non-Banking Financial Companies  (IDF-NBFCs),  strengthening  long-tenor  financing  through  National Investment  and  Infrastructure  Fund  (NIIF)  and  NaBFID,  and  deploying  PCE mechanisms to de-risk infrastructure bond issuances and broaden participation in domestic debt markets.

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