Small savings investment hits a new high to fund power projects

NSSF offers high-volume long-term debt funding, an area where the bond market falls short

The National Small Savings Fund (NSSF) is investing Rs 1.2 trillion this financial year in government agencies that fund rural electrification and power, railway and highway projects among others. This would be the highest ever investment by the NSSF into public sector undertakings (PSUs), according to official government data.

NSSF is an aggregation of funds flowing from popular saving schemes such as post office savings deposits and public provident funds. It generally uses these funds to lend to the central government, so that it can pay back with interest to small savers. After the obligations on most state governments to