Archive · 25 Sep 2025
India: Centre Pushes DFIs to Partner on Urban Infrastructure
The Indian government wants financial institutions to team up with international groups like the World Bank to build cities.
They're trying to combine money from different sources to make big projects happen.
Right now, the government pays for most of these projects.
This new plan involves what's called 'blended financing' which mixes different types of funding to lower the cost and make projects possible.
It’s a way to get enough money for things like roads and buildings, because these projects are very expensive.
This should help cities grow and improve.
The Indian government is encouraging DFIs to collaborate with multilateral agencies.
The goal is to use 'blended financing' for urban infrastructure projects.
This approach combines concessional and commercial capital.
India needs to invest an average of $55 billion annually in urban infrastructure until 2036.
Blended financing aims to reduce costs and attract expertise for large-scale projects.
- Who
- Centre, DFIs, multilateral agencies
- What
- Encouraging partnerships for urban infrastructure funding
- When
- Ongoing, with accelerated capital spending in 2025-26
- Where
- India
- Why
- To reduce costs and increase funding for urban projects.
- DFIs involved
- NaBFID, NIIF
- Multilateral agencies
- World Bank, ADB, JICA, IFC
- Focus
- Urban infrastructure development
- Funding Approach
- Blended finance
- Govt. Finance Share
- 75% of city infrastructure
- ULBs Finance Share
- 15% of city infrastructure