New Delhi, Feb. 1 -- Finance minister Nirmala Sitharaman on Sunday announced setting up of an infrastructure risk guarantee fund to ease financing bottlenecks and revive stalled projects.

Announcing the budget proposals for 2026-27, Sitaraman said the fund would provide partial credit guarantee for loans being extended for infrastructure projects allowing easier banking credit.

Mint had reported on 29 December about a government plan for an infrastructure risk guarantee fund likely to be announced in the budget.

The proposed fund may be set up on the lines of credit guarantee schemes for small businesses.

The proposal on the fund was submitted to the finance ministry by a committee formed under the National Bank for Financing Infrastr...