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Finance Secretary T V Somanathan has said the government is considering to introduce insurance bonds as an alternative to bank guarantees. Bank guarantees are usually asked for while extending a loan and typically require a collateral. An insurance bond is also a surety but it does not require any collateral. As per reports last year, insurance regulator Irdai was also looking at the option of insurers offering surety bonds in the context of road projects. On the issue of arbitration awards being appealed, Somanathan said there is a need for a behaviourial change and added that the government trusts wealth creators.

Finance Minister Nirmala Sitharaman has said the government is committed to working towards ensuring policy certainty, adding that the regulators also have a key role in ensuring the same. She said the government is working with the regulators on this ‘important issue’. The minister emphasised the importance of 'India's own equity capital' while addressing the industry and assured government facilitation for sunrise sectors and startups.

Sitharaman also assured the industry of addressing issues related to competitiveness, including high power tariffs, and matters related to cumbersome regulatory compliances. Sitharaman said the economy is moving gradually from a bank-led lending model to a more market-based finance model and the operationalisation of the Development Finance Institution (DFI) will ensure long-term lending for projects. The DFI will increase competition for banks and also improve their efficiency.