{"id":141408,"date":"2026-05-01T14:29:18","date_gmt":"2026-05-01T14:29:18","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=141408"},"modified":"2026-05-01T14:50:44","modified_gmt":"2026-05-01T14:50:44","slug":"india-project-finance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/india-project-finance\/","title":{"rendered":"India: Project Finance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-141408","comparative_guide","type-comparative_guide","status-publish","hentry","guides-project-finance","jurisdictions-india"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Luthra and Luthra Law Offices India<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/05\/Luthra-and-Luthra-Law-Offices-India-Logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Luthra and Luthra Law Offices India<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2026\/05\/Luthra-and-Luthra-Law-Offices-India-Logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Project Finance laws and regulations applicable in India<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the typical ownership structures for project companies in your jurisdiction? Does this vary based on the industry sector?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Project financings in India are ordinarily structured through a ring-fenced special purpose vehicle that owns the project assets and enters into the core project contracts. Sectoral variation is relevant: power and renewable projects are commonly housed in single-project SPVs; road, airport, port and other PPP assets are generally held in concession-specific SPVs; and mature operating assets are increasingly aggregated through holdco, platform or InvIT structures. Indian project finance also remains, as a matter of market practice, more limited-recourse than fully non-recourse, with sponsors commonly expected to stand behind identified construction-period and early-operational risks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any corporate governance laws or accounting practices that foreign investors in a project company should be aware of?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Companies Act, 2013, together with the rules framed thereunder, constitutes the cornerstone of India\u2019s corporate governance framework, prescribing requirements relating to board composition, directors\u2019 fiduciary duties, shareholder rights, regulation of related-party transactions, and standards for transparency and accountability in corporate affairs. In the case of listed companies, additional governance requirements are imposed by the Securities and Exchange Board of India (\u201cSEBI\u201d), including in relation to independent directors, constitution and functioning of key board committees, enhanced disclosure norms, and ongoing compliance and reporting requirements aimed at ensuring market integrity and investor protection. Foreign investors must also consider the exchange control regime under the Foreign Exchange Management Act, 1999 (\u201cFEMA\u201d), which governs inbound and outbound investments, and prescribes sectoral caps, entry routes, pricing guidelines, reporting obligations, and restrictions on downstream investments, thereby influencing transaction structuring and governance rights. From an accounting perspective, companies are required to prepare financial statements in accordance with Indian Accounting Standards (Ind AS), which are substantially converged with International Financial Reporting Standards (IFRS), and to comply with applicable statutory audit requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If applicable, what forms of credit support from sponsors or host governments are typically provided?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In India, credit support in project financings is predominantly sponsor-driven rather than government-backed, and typically includes equity\/ quasi-equity contribution commitments, sponsor guarantees, letters of comfort, and undertakings to cover cost overruns, funding shortfalls, or debt service deficiencies. However, as a matter of current market practice, sponsor corporate guarantees are generally avoided for the entire life of the loan facility, largely due to the potential tax implications arising from the recognition of contingent guarantee obligations at the guarantor level. Sponsors may also provide security over their shareholding in the project company. Government support, where available (particularly in critical sectors such as power, roads, and public-private partnerships) are in the form of viability gap funding, grants, annuity or availability-based payments, minimum revenue or offtake assurances, and, in limited cases, sovereign or state government guarantees and support agreements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of security interests are available (and suitable) for a project financing in your jurisdiction? Are direct agreements used?\u00a0<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The standard Indian security package typically includes mortgage over immovable property; hypothecation over movable assets, receivables, current assets and bank accounts; pledge over shares and, where relevant, quasi-equity instruments; and assignment by way of security over insurance proceeds and material project contracts to the extent assignable. In syndicated or consortium transactions, the security is usually held by a security trustee. Direct agreements are widely used with concessioning authorities, key offtakers, EPC contractors, O&amp;M contractors and account banks so that lenders have notice rights, cure rights and a workable substitution framework.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the above security interests perfected?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Perfection of security interest in India depends on the nature of the underlying asset and the type of security created and typically involves compliance with prescribed filing and registration formalities within stipulated timelines. In case of security created by a company, particulars of the charge must be filed with the Registrar of Companies (under Section 77 of the (Indian) Companies Act, 2013) within the stipulated statutory timeline. In addition, security interest is typically required to be registered with the Central Registry of Securitisation, Asset Reconstruction, and Security Interest of India (established under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act)) and recorded with an information utility (established under the Insolvency and Bankruptcy Code, 2026 (IBC)). Where the security involves immovable property, a registered mortgage (and, in certain states, an equitable mortgage) must also be registered with the relevant sub-registrar of assurances in accordance with the Registration Act, 1908.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify how security is enforced (notably the enforcement options available for secured parties) both pre and post insolvency\/bankruptcy of the project company?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Enforcement of security interests in India depends on whether the project company is solvent or undergoing insolvency proceedings. Prior to insolvency admission, secured creditors can enforce their security interest in accordance with the terms of the financing documents and applicable law, particularly under the SARFAESI Act, which enables certain secured creditors to enforce security without court intervention, including by taking possession of secured assets, effecting sale, or appointing a receiver. Creditors may also pursue security enforcement through civil courts or invocation of contractual rights, including enforcement of share pledges and assignment of receivables. However, upon admission of insolvency proceedings under IBC, a moratorium is imposed prohibiting enforcement actions, and secured creditors are required to participate in the corporate insolvency resolution process with recoveries determined in accordance with the resolution plan approved by the committee of creditors or, failing which, the liquidation process.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are other important considerations in relation to the security regime in the jurisdiction that secured parties should be aware of?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It is essential that all security documents are duly stamped as per the applicable stamp laws (which vary from state to state) and the security interest is duly perfected within the prescribed timeline. Inadequate stamping can render the security documents inadmissible in evidence and significantly impair enforceability. Foreign secured creditors should also consider the extant exchange control regulations under FEMA, particularly in relation to security creation, guarantees, and upstreaming of proceeds. In addition, a robust intercreditor arrangement is crucial to facilitate coordinated enforcement, as well as efficient realization and distribution of proceeds in a distressed scenario.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What key project risks should lenders be aware of in project financings in your jurisdiction? This may include, but may not be limited to, the following risks: force majeure, political risk, currency convertibility risk, regulating or permitting risk, construction\/completion risk, supply or feed stock risk or legal and regulatory risk).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Project financing transactions in India generally involve the full spectrum of risks typical of such financings globally. However, lenders should pay particular attention to construction risk (delays, cost overruns, and contractor defaults), completion risk, and the adequacy of performance security. Key concerns also include regulatory and approval risk (delays in obtaining environmental, land, and other statutory clearances), revenue and off-take risk (especially counterparty credit risk and tariff uncertainty), and input-supply risk. In addition, macroeconomic risks such as interest rate and foreign exchange fluctuations, together with policy and change-in-law risk, can materially affect project cash flows and overall bankability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are any governmental \/ regulatory consents required and are any financing or project documents requirement to be filed with any authority in order to be admissible in evidence in a court of law, valid or enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Depending on the nature of the obligors, the sector, and the financing structure, certain governmental and regulatory consents may be required in India. These may include approvals under FEMA and regulations issued by the Reserve Bank of India (\u201cRBI\u201d) particularly in relation to external commercial borrowings and security creation involving non-residents and related cross-border arrangements. In addition, sector-specific approvals may be required in accordance with the extant foreign direct investment (FDI) policy and other regulatory frameworks governing the relevant industry. For filing and registration requirements, please refer to our responses above.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there are any specific foreign exchange, royalties, export restrictions, subsidies, foreign investment, that are relevant for project financings (particularly in the natural resources sectors)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In India, project financing, particularly in the natural resources sector, is subject to a range of foreign exchange, investment, and sector specific regulations. Under FEMA and RBI regulations, compliance requirements apply, inter alia, to the upstreaming of cash flows, including dividends, royalties, and debt service payments, which are also subject to prescribed eligibility criteria, end-use restrictions, and reporting obligations. Further, foreign investments in the natural resources sector are also subject to the extant FDI policy, which prescribes sectoral caps, government approval requirements, and conditions which are specific to natural resources, mining, oil and gas, and related infrastructure. In addition, export controls, licensing requirements, domestic supply obligations, and pricing restrictions may apply to specified natural resources, depending on the sectoral regulatory framework.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please set out any specific environmental, social and governance issues that are relevant. For example, are project companies subject to certain ESG laws, reporting requirements or regulations?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Environmental and social compliance remains a core bankability issue in India. Depending on the project, environmental clearance, forest approval, wildlife permissions, pollution-control consents and land-use compliance may be essential both before drawdown and during operations. From a governance perspective, listed entities are also subject to SEBI\u2019s Business Responsibility and Sustainability Report (\u201cBRSR\u201d) framework, which is the principal ESG disclosure format for the top 1,000 listed entities (as applicable from FY 2026-27), while BRSR Core (as introduced by SEBI in July 2023 as a set of key performance indicators) is the narrower set of standardised key ESG metrics within that framework intended to improve consistency and external assessment. Although these disclosure requirements do not apply to every project company, they can still be relevant where the sponsor, holding company or issuer group is a listed entity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has any public-private partnership models or laws been enacted in the jurisdiction, and if so, are they specific to certain industry sectors?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>India does not have a single omnibus public-private partnership (\u201cPPP\u201d) statute applicable across all sectors. Instead, PPP and concession-based projects operate within a policy and institutional framework led principally by the Department of Economic Affairs, Ministry of Finance, and NITI Aayog. At the central level, PPP projects are supported by the Public Private Partnership Appraisal Committee (PPPAC) framework for appraisal and approval, the Viability Gap Funding (VGF) regime for eligible infrastructure projects, and sector-specific or model concession agreements\/guiding principles developed or reviewed by NITI Aayog. PPP structures are well established in roads, airports, ports, transport and other infrastructure sectors with the concession agreement remaining the central risk-allocation document.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will foreign judgments, arbitration awards and contractual agreements to arbitrate be upheld?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, yes. Foreign arbitral awards are enforceable in India under Part II, Chapter I of the Arbitration and Conciliation Act, 1996 (\u201cIAACA\u201d), which gives effect to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (\u201cNew York Convention\u201d). A \u2018foreign award\u2019 for this purpose must satisfy the requirements of Section 44 of IAACA, including that it arises from a commercial legal relationship and is made in a notified New York Convention territory. Contractual agreements to arbitrate are also generally upheld, and Indian courts may refer parties to arbitration under Section 45 unless the agreement is prima facie null and void, inoperative or incapable of being performed. Enforcement of a foreign award may, however, be refused on the limited grounds set out in Section 48 of IAACA, including incapacity or invalidity of the arbitration agreement, lack of proper notice or inability to present one\u2019s case, excess of scope, non-compliant tribunal composition or procedure, the award not being binding or having been set aside or suspended at the seat, non-arbitrability under Indian law, or conflict with the public policy of India. The public-policy exception is statutorily narrowed and does not permit a review on the merits. If the court is satisfied that the award is enforceable, it is deemed to be a decree of that court under Section 49 of IAACA.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is submission to a foreign jurisdiction and waiver of immunity effective and enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Submission to a foreign court or to foreign-seated arbitration is generally recognized in Indian commercial contracts, subject to Indian public policy, mandatory Indian law and the exclusive jurisdiction of Indian forums in matters such as insolvency and certain in rem proceedings. Where a foreign-seated arbitration results in an award that is sought to be enforced in India, recognition and enforcement are governed by the New York Convention framework in Part II of the IAACA, and remain subject to the limited refusal grounds in Section 48 thereunder. Where, however, a foreign state or sovereign instrumentality is involved, immunity issues must be analyzed separately under Section 86 of the Code of Civil Procedure, 1908; in practical terms, proceedings in India against a foreign state, and execution against its property, generally require prior Central Government consent.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify what you consider to be (a) the key current issues for project financing in your jurisdiction; and (b) any emerging trends or topics which should be considered or focused on by project financing stakeholders in this jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>For scheduled commercial banks, non-banking financial companies and all-India financial institutions, project finance discipline must now be read with the wider RBI direction-set dated November 28, 2025 (as amended), and not only the earlier standalone project finance directions. In practice, lenders are focusing on financial closure, a common DCCO across lenders, construction-linked disbursement discipline and early stress recognition. Land aggregation has also become more critical, especially for large renewable energy projects, since the current RBI credit-facilities framework requires sufficient land \/ right of way before first disbursement, with a 75% threshold for non-PPP projects, while transmission line projects remain subject to lender assessment. At the same time, right of way continues to present implementation risk in transmission and renewable projects, including wind-linked evacuation infrastructure, with delays often arising from compensation disputes, forest clearances and transmission-connectivity issues. Market trends continue to favour renewables, hybrid projects, storage, transmission, e-mobility infrastructure, operating-asset refinancing and InvIT \/ platform-led monetisation, while private capital remains selectively active in structured and de-risked infrastructure opportunities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify in your jurisdiction what key legislation, subsidy regimes or regulations have been implemented (or will \/ plan to be) for projects in connection with the energy transition and\/or specific projects due to energy security?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key current measures include the National Green Hydrogen Mission, PM Surya Ghar, PM-KUSUM and PM E-DRIVE, together with ongoing storage, transmission and manufacturing-linked policy support in the clean-energy ecosystem. PM-KUSUM is particularly relevant from a project finance perspective because it increases the number and types of solar projects that can be developed and financed in rural India, not just traditional large solar projects. Green hydrogen should presently be viewed as an emerging area in India, while the policy push is significant and market activity has begun to gather pace, the segment is still at an early stage and project finance deployment remains selective rather than widespread. By contrast, the more immediate and visible financing pipeline continues to be concentrated in utility-scale renewables, hybrid projects, storage, transmission evacuation, decentralised solar and EV-linked infrastructure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please identify if there are any material tax considerations which need to be taken into account for a project financing in your jurisdiction, and if so, how such tax issues can be mitigated.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The most material issues are stamp duty and registration costs on financing and security documents. Stamp duty analysis should be undertaken early because it is state specific and can materially affect both the overall cost of funding and enforceability timelines. This is particularly important in cross-State financings, where documents may be executed in one State but later brought into, registered, adjudicated or relied upon in another State at the time of enforcement. In such cases, questions may arise as to whether additional or differential stamp duty is payable under the law of the State where the instrument is later received or sought to be acted upon. If a document is not duly stamped, it may be impounded and cannot ordinarily be admitted in evidence unless the deficit duty and applicable penalty are paid. Accordingly, stamp-duty mapping across the relevant execution, asset and enforcement jurisdictions should form part of the structuring exercise at the outset along with inbuilt indemnity provisions in relation thereto.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of funding structures (e.g. debt, equity or alternative financing) are typical for project financing in your jurisdiction. For example, are project bond issuances, Islamic finance and \u2013 in the context of mining deals \u2013 streams or royalties, seen as attractive (and common) options for stakeholders? Are you seeing private credit in project financing in your jurisdiction or other alternative financiers? If so, what types of projects are they looking to finance and what are the key structuring issues of such financings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Project financings in India are still primarily funded through sponsor equity and long-term rupee debt. Consortium lending is common, and the financing documents usually set out the agreed debt-equity ratio, drawdown conditions and limits on shareholder payouts. Bond and listed debt structures are more common for operational assets and refinancings than for greenfield construction projects. InvIT-backed structures continue to grow for operating infrastructure, while private credit is generally more active in structured or lower-risk opportunities than in conventional greenfield project finance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any regional development banks or export credit agencies, and if so, what is their role in project financing in your jurisdiction and beyond.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Multilateral and development finance institutions such as Asian Development Bank and Asian Infrastructure Investment Bank continue to participate in Indian infrastructure and energy financing through direct loans, co-financings and platform-level support. Domestic and government-owned institutions like Power Finance Corporation of India Limited, REC Limited, India Infrastructure Finance Company Limited, National Bank for Financing Infrastructure and Development (NABFID) have played an active role in supporting project financing in India.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any important insurance law principles or considerations in connection with any project financing in your jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Indian law generally expects property in India to be insured within the domestic regulatory framework, subject to permitted exceptions. It is imperative to highlight that only insurers registered with the Insurance Regulatory and Development Authority of India (\u201cIRDAI\u201d) are permitted to provide insurance cover for such assets, and insurance with foreign insurers is typically not allowed unless specific approval is obtained from the IRDAI. From a project finance perspective, lenders typically require robust property damage, business interruption and other project-specific cover, together with loss-payee or first-loss-payee endorsement, assignment of insurance proceeds where appropriate, notice of cancellation and alignment between the insurance package and the broader financing risk matrix.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please explain if there are any issues with entering into any hedging arrangements in this jurisdiction.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Hedging i.e. the activity of undertaking a foreign exchange derivative \/ foreign currency interest rate derivative transaction to offset the impact of an anticipated or a contracted exposure is routinely used in India, especially in foreign currency financings, but it must comply with the RBI \/ FEMA derivatives framework and the operational requirements of the authorised dealer bank. Typically, the RBI \/ FEMA derivatives framework don\u2019t allow a user to hedge the same exposure through multiple derivative contracts, and the notional amount and duration of the hedge must not exceed the value and tenor of the underlying exposure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3204<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/141408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=141408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}