Public capital must act as catalyst, not substitute for pvt investment: Sitharaman
Union finance minister Nirmala Sitharaman said public capital must act as a catalyst for private investment, citing VGF, HAM, InvITs, NIP and PM Gati Shakti.
Finance Minister Nirmala Sitharaman emphasized that public capital should serve as a catalyst to stimulate private investment, rather than replacing it outright. She outlined various measures taken by the government to foster this principle, including viability gap funding, hybrid annuity models, infrastructure investment trusts, the National Infrastructure Pipeline, and the Prime Minister Gati Shakti project.
These initiatives aim to address financial constraints, balance risk-sharing, enhance project bankability, recycle capital, and provide long-term investment visibility. Additionally, the upcoming Union Budget 2026-27 introduces new dedicated freight corridors, high-speed rail corridors, national waterways, and a coastal cargo promotion scheme to further encourage private sector involvement.
Recognizing the significant growth potential of BRICS economies, Sitharaman highlighted the need to overcome structural challenges in mobilizing private capital at scale. She stressed that the primary obstacles lie in establishing confidence, stability, predictability, and credible long-term frameworks necessary to unlock sustained private participation across member countries.
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