**Executive Summary**
The document presents the Minister of State for Finance's response to a parliamentary question regarding investments made in infrastructure projects in the State of Rajasthan under the National Pension System (NPS) over the last five years. The response clarifies investment guidelines issued by the Pension Fund Regulatory and Development Authority (PFRDA) and provides data on infrastructure sector investments from NPS funds from 31.03.2021 to 30.09.2025. There are no immediate deadlines or action items mentioned in the document.
**Key Points / Main Content**
* **Investment Guidelines & Permissible Investments:**
* PFRDA's investment guidelines allow Pension Funds to invest NPS funds in various asset classes.
* The guidelines define permissible investments and require Pension Funds to prudently invest to maximize returns and minimize risks.
* Pension Funds can invest in infrastructure sector through debt securities.
* **Debt and Related Investments:**
* Debt securities issued by Real Estate Investment Trusts (REITs) regulated by SEBI.
* Debt securities issued by Infrastructure Investment Trusts (InVITs) regulated by SEBI.
* Debt securities issued by body corporates engaged mainly in infrastructure development, operation, and maintenance.
* Infrastructure and affordable housing Bonds issued by scheduled commercial banks.
* Securities issued by Infrastructure Debt Funds regulated by Reserve Bank of India.
* Units issued by Infrastructure Debt Funds regulated by SEBI.
* Credit rated Municipal bonds rated 'AAA' or equivalent by at least two SEBI-registered credit rating agencies.
* Sovereign Green Bonds are permitted under Government Securities and Related Investments.
* **Infrastructure Investment Data:**
* The total investment made in infrastructure sector from NPS funds over the last five years is listed (Market Value in Cr.):
* 31.03.2021: 1,35,816
* 31.03.2022: 1,39,531
* 31.03.2023: 1,65,289
* 31.03.2024: 1,81,901
* 31.03.2025: 2,35,153
* 30.09.2025: 2,48,422
**Impact Analysis**
**Stakeholder:** Pension Funds
**Impact:** The document clarifies the permissible investment avenues for NPS funds, particularly in the infrastructure sector.
**Action Required:** Ensure investment strategies align with PFRDA guidelines to prudently invest and manage risk.
**Stakeholder:** PFRDA
**Impact:** The response reinforces PFRDA's role in setting investment guidelines for NPS funds.
**Action Required:** No direct action specified, but the response highlights PFRDA's regulatory role.
**Stakeholder:** Investors in NPS
**Impact:** Provides transparency regarding the investment of NPS funds in infrastructure projects.
**Action Required:** No action is required, but they are informed about the type of investments made with their NPS funds.
Key Entities Referenced
Rajasthan: Indian state where investments are being made.
National Pension System (NPS): Government-sponsored pension scheme under discussion.
Pension Fund Regulatory and Development Authority (PFRDA): Regulatory body overseeing pension funds and investments.
Securities and Exchange Board of India (SEBI): Regulates Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InVITs).
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. †1222
ANSWERED ON MONDAY, 08 DECEMBER, 2025/ AGRAHAYANA 17, 1947 (SAKA)
National Pension System
†1222 SHRI RAHUL KASWAN
Will the Minister of Finance be pleased to state:
(a) the total investment made in infrastructure projects in the State of Rajasthan during the last five
years under the National Pension System (NPS) and the sectors (roads, energy, urban
development, water management etc.) which has been made;
(b) whether Pension Fund Regulatory and Development Authority (PFRDA) has scheme-wise,
year-wise, and asset-class-wise (Government securities, corporate bonds, infra bonds, InvITs)
details of infrastructure investment in Rajasthan, if so, the details thereof;
(c) whether the Union Government or PFRDA is making any policy reforms to increase NPS
Investments through new infrastructure bonds, municipal bonds, green bonds or InvIT/REIT
in Rajasthan, if so, the details thereof; and
(d) whether any special investment structure, guarantee model or risk-free mechanism is proposed
to attract NPS funds in Rajasthan's mega projects such as expressways, solar parks, irrigation
projects and urban transport and if so, the details thereof?
ANSWER
MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d) The investment guidelines issued by the Pension Fund Regulatory and Development
Authority (PFRDA) allow Pension Funds to invest National Pension System (NPS) funds in various
asset classes, viz Government Securities, Corporate Debt Securities, Equities, Asset Backed
Securities, Trust Structured Investments and Miscellaneous Investments. These investment
guidelines define the universe of permissible investments by Pension Funds for the schemes
managed by them and Pension Funds have the fiduciary responsibility to prudently invest the funds
so as to maximise returns and minimise volatility and risks. The investments made by Pension
Funds in debt securities of issuing entities may, inter alia, be invested in infrastructure sector.
However, these investments are not captured on the criteria of projects, regions or locations. The
investment guidelines permit investment in following Debt and Related Investments:
i. Debt securities issued by Real Estate Investment Trusts (REITs) regulated by the
Securities and Exchange Board of India.
ii. Debt securities issued by Infrastructure Investment Trusts (InVIT) regulated by the
Securities and Exchange Board of India.
iii. The following infrastructure related debt instruments• Listed (or proposed to be listed in case of fresh issue) debt securities issued by body
corporates engaged mainly in the business of development or operation and maintenance of
infrastructure, or development, construction or finance of affordable housing. Further, this
category shall also include securities issued by Indian Railways or any of the body
corporates in which it has majority shareholding. This category shall also include securities
issued by any Authority of the Government which is not a body corporate and has been
formed mainly with the purpose of promoting development of infrastructure
• Infrastructure and affordable housing Bonds issued by scheduled commercial bank.
• Listed (or proposed to be listed in case of fresh issue) securities issued by Infrastructure
Debt Funds operating as a Non-Banking Financial Company and regulated by Reserve Bank
of India.
• Listed (or proposed to be listed in case of fresh issue) units issued by Infrastructure Debt
Funds operating as a Mutual Fund and regulated by Securities and Exchange Board of India.
• Listed or proposed to be listed credit rated Municipal bonds. (The Municipal Bonds should
be rated ‘AAA’ or equivalent in the applicable rating scale by at least two credit rating
agencies registered with SEBI.)
iv. Sovereign Green Bonds are already permitted under Government Securities and Related
Investments.
The investments made in infrastructure sector from NPS funds during the last five years are as
below:
Market Value (Rs in Cr.) as on:
31.03.2021 31.03.2022 31.03.2023 31.03.2024 31.03.2025 30.09.2025
1,35,816 1,39,531 1,65,289 1,81,901 2,35,153 2,48,422
Source: PFRDA
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