THE FRAMEWORK

Project finance is a type of financing that is used to fund large-scale infrastructure and industrial projects. In India, project finance has become an important source of funding for various sectors, including power, roads, ports, and telecommunications.

The legal framework governing project finance in India is complex, and it is important for parties involved in project finance transactions to work with experienced legal advisors to ensure compliance with Indian laws and regulations. The legal framework governing project finance in India is governed by various laws, including the Companies Act, the Reserve Bank of India Act, and the Foreign Exchange Management Act. Some of the key aspects of project finance law and practice in India include:

• Project structuring: Project finance transactions involve complex structuring arrangements, and it is important for parties to work with experienced legal advisors to ensure that the project structure is compliant with Indian laws and regulations.

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• Regulatory compliance: Parties involved in project finance transactions may require to comply with various regulations and guidelines issued by the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and other regulatory authorities. Compliance requirements include obtaining necessary approvals, reporting requirements, and compliance with foreign exchange regulations.

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• Documentation: Project finance transactions require extensive documentation, including loan agreements, security documents, and other contracts. It is important for parties to work with experienced legal advisors to ensure that the documentation is comprehensive and compliant with Indian laws and regulations.

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• Risk management: Project finance transactions involve various types of risks, including credit risk, market risk, and operational risk. Parties involved in project finance transactions need to implement effective risk management strategies to mitigate these risks.

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• Dispute resolution: Disputes may arise in project finance transactions, and parties need to have effective dispute resolution mechanisms in place to resolve disputes in a timely and cost-effective manner.

SANGHAVI & PARTNERS ADVANTAGE

Sanghavi & Partners provides legal services to clients in various areas of law, including project finance in India. The firm has a team of experienced lawyers who are well-versed in the legal and regulatory framework governing project finance in India and provide practical and strategic advice to clients to help them achieve their business objectives. The firm offers a range of legal services related to project finance in India, including:

• Project structuring: Sanghavi & Partners advises clients on the structuring of project finance transactions in India, including the use of special purpose vehicles (SPVs) and other complex structuring arrangements.

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• Regulatory compliance: The firm advises clients on regulatory compliance requirements for project finance transactions in India, including obtaining necessary approvals, reporting requirements, and compliance with foreign exchange regulations.

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• Documentation: Sanghavi & Partners assists clients in preparing comprehensive documentation for project finance transactions, including loan agreements, security documents, and other contracts.

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• ​Dispute resolution: Sanghavi & Partners assists clients in developing effective dispute resolution mechanisms to resolve disputes arising from project finance transactions.