Document background
The Project Finance Contract serves as the primary financing document for large-scale infrastructure and development projects in India, establishing the legal and financial framework for project implementation. This document is essential when implementing projects through limited-recourse or non-recourse financing structures, where the project's assets and cash flows serve as the primary security. The agreement must comply with Indian legal requirements including the Indian Contract Act, Banking Regulation Act, and sector-specific regulations while incorporating international best practices in project finance. It typically includes detailed provisions for loan facilities, security arrangements, project accounts, construction and operation requirements, and risk allocation mechanisms. The document is particularly crucial for projects requiring substantial capital investment and involving multiple stakeholders, where careful structuring of financial and contractual arrangements is necessary for project success.
