Category: Infrastructure Investments
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RBIs draft lending norms – how big will the impact be on infra projects?
RBIs draft lending norms – how big will the impact be on infra projects? June 7, 2024 Author: Aditya Jain What? On May 3rd, 2024 RBI released ‘stricter’ draft norms for banks, NBFCs and FIs lending to under-construction projects Provisioning requirements proposed to be increased from 0.4% to 5% during construction phase for standard assets…
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Group Captive Upheld –Stage Set for C&I Secondaries
Fetters on captive open access removed – group open access now has clear, consistent standards. ‘Captive User’ benefit not limited only to those who establish/ set up the plant but also to those who acquire later – providing much needed relief for secondary buyers of C&I assets.
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C&I Green Open Access-play: The next big investment destination for infra funds?
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C&I market significantly untapped – accounts for just 6% of the total renewable power purchases Captive open access the most preferred route – i.e. procuring power for captive consumption from private renewable players using govt. transmission facilities. C&I consumer perspective – low investment, significant cost savings,
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Smart meters: The basic infrastructure for a green future
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Smart meters are essentially a data play – offering unprecedented data that can be used to bring online more green energy, curb electricity loses and reduce costs for consumers The sector has immense depth – USD 30 bn over just the next 2-3 years….
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SEBI is slowly re-defining InvITs: What’s at risk for the product and its institutional audience?
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Strong minority unitholder protections introduced – for both public and private InvITs Private InvITs originally designed to attract large institutional capital – light touch re- gulations allowed flexibility to parties to manage their arrangements…
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Investing into Infrastructure Holding Companies: What if you become a core investment company?
Infrastructure companies are mandated to execute concessions through SPVs, which often results in qualification of the holding company as a core investment company (CIC)CIC risk is often avoided by structuring EPC and O&M revenues through the hol- ding company and swelling …
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Ambiguity with thin cap norms: Private credit players risk significant tax leakage
Accurate reading of thin capitalization norms is highly relevant to maximize IRRs, especially in asset heavy sectors Currently, norms interpreted such that sometimes the entire interest paid to foreign related parties is disallowed for the target (as expense)…
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Top 5 Tax Considerations When Structuring Debt Investments in India
Recent developments in the Indian tax regime have brought India closer to global norms though hybrid instruments that have come under increased scrutiny GAAR provisions have enabled tax authorities to examine the commercial substance of transactions, underscoring the importance of purpose, pooling, and people…
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InvITs: Gamechanger in the Indian Infrastructure Story!
Infrastructure has been the highest capital receiver in 2021, and InvITs continue to be the most favoured investment vehicle for sponsors and global investors alike. InvITs have received >USD 10 billion of investments in the last couple of years, with investments from some of the largest fund houses. The roads regulator of India (NHAI) has…
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Structures and Considerations for Offshore Debt Funding
Special situations and private credit funds have been increasingly looking at the high yield Indian market. With banks facing liquidity and risk issues, alternate capital with customised solutions seem attractive. Structured commonly through collateralised redeemable bonds with pay-outs deferred until maturity, these bonds may have equity kickers built-in as well, in the form of redemption…