Infrastructure is one of the important sectors recognised as the greatest facilitator of development in India. There are several infrastructural sectors including Power, Aviation, Ports, Road and Highways, Railways and Oil & Gas. Each of these areas has undergone major reforms as India moved from a closed and mixed economy to open market allowing private and foreign participation in these areas. In many of these areas the Central and the State Government concerned allow private participation in the form of build, own and operate (BOO), build, operate and transfer (BOT) or build, lease and transfer (BLT) basis. Financing of these projects also requires significant financing arrangements. In addition there are several regulatory issues that require compliance.
Finance and Project Documentation
The area of financing of infrastructure projects in India is central to the success of the project. A variety of financing arrangement exists for various projects and selection of the proper financing mechanism is essential.
The other area of importance relates to project documentation, especially for EPC contracts, preparation of bids, drafting of joint development agreements and related agreements such as power purchase agreements. These project documentations require expertise and support to ensure success of the projects.
There are several regulatory issues that arise in such projects including compliance with sector specific regulatory laws apart from laws such as environment and labor. Knowledge of various issues arising in these areas of law and a practical and legally valid solution is necessary to ensure success of the projects.
The Infrastructure Team in L&S has extensive experience in drafting and negotiating various agreements in this area including preparation of project documentation and related agreements. The Project Finance team has been involved in a large number of complex cross-border transactions, requiring exhaustive knowledge of legal and regulatory frameworks. The team advises both borrowers and lenders in connection with various matters such as due diligence, drafting, negotiation and vetting of loan and security documentation, including in respect of external commercial borrowings, inter-creditor issues, complex security structures and general corporate issues.