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ABOUT Infrastructure Project Funding

Infrastructural development is of paramount importance and is absolutely necessary for the growth and development of an economy.  On assessment of infrastructural investment it can be seen that there has been a rise in infrastructure development and henceforth there would be need for rise in sources of funding as well.

Earlier the financing needs right from implementation to maintenance were solely undertaken by the government, but due to high funding requirements, the government has been inviting private participation through Public Private Partnerships (PPP), commercial bank lending, take out financing, infrastructure financing institutions, infrastructure debt funds, external commercial borrowing, foreign direct investments and has been extending tax holidays to make funding feasible for lenders and borrowers. Loans provided are mostly on the basis of projected cash flows, rather than from the general assets or creditworthiness of the project sponsors.


Any individual or sovereign entity may apply for Infrastructure Project Funding.

Required Documents

The documents needed vary from case to case. Let FINMART understand your needs and assist you in documents requirement.


  • Lenders always tend to favour recourse loans.
  • The lender can go after the borrower’s other assets along with the collateral asset (asset secured against the loan. It is usually the asset that was purchased with the loan amount) or sue in case of default made by the client.
  • The interest rates are lower than the Non-Recourse loan.
  • Borrowers almost always are in favour of non-recourse loans.
  • Here the lender is out of luck in case of deficiency. If the collateral does not sell for at least what the borrower owes, the lender must absorb the difference and walk away. He cannot go after other assets.
  • These loans come with higher interest rates and are reserved for individuals and businesses with the best credit.
  • Failure to pay off a non-recourse debt may leave other assets unharmed, but the borrower's credit rating will be affected.
A project may be subject to a number of technical, environmental, economic and political risks, particularly in developing countries like India.
Funds are received based upon the projected cash flows of the project. The financing of these projects are usually undertaken by multiple parties to distribute the risk associated with the project. Usually A project financing structure involves equity investors and lending institutions that provide funds for the operation.
  • Non-Recourse or limited recourse funding.
  • Large scale investment.
  • Long gestation period.
  • Low operating cost.
  • Repayments from the revenues generated from the project.
To stimulate public investment in infrastructure, a special purpose vehicle – India Infrastructure Finance Company Limited (IIFCL) was set up for providing long-term financial assistance to infrastructure projects.
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