Skip to main content
Question
Finance
Asked a question last year

What is project financing in india?

Where am I?

In StartupTalky you can ask and answer questions and share your experience with others!

Project finance  is a type of syndicated account intended for long haul foundation and modern tasks frequently including governments. We have a noteworthy influence in subsidizing ventures in different modern divisions, catalyzing open and private organizations and diminishing task hazard utilizing a blend of government credits, protection and private loaning.

Structure of a Typical Project Financing Arrangement

Structure of Project Finance

The support builds up and puts capital in the task organization, which will fill in as the borrower.

The undertaking organization signs contracts with different gatherings associated with the task.

The task organization consents to a credit arrangement with the money related establishments, and acquires assets for the fruition and activity of the venture.

The undertaking organization utilizes incomes that are created from the task to reimburse the credit

Puru BhatnagarTop Contributor
Business Analyst, Entrepreneur, Business developer, Marketer

Project financing is actually planning for the financial or funding of long term infrastructure, or any industrial project.

The finance that is needed to run the project can be taken from any debt or on equity basis and that debt is returned by the cash flow which is generated by the project.

This is basically a loan structure and it is mainly taken by private industries as they can manage their projects off balance sheet.

This type of structure completely relies on the cash flow generated from the project after its completion.

A debtor which is having any non-recourse loan cannot get any additional payment beyond the seizure of the asset.