Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JSF
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Structured Finance
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a demo
  • Log in
The Journal of Structured Finance

The Journal of Structured Finance

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JSF
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
Article

Project Finance Default in India: Implications for Bank Loans to the Infrastructure Sector

Vikas Srivastava
The Journal of Structured Finance Summer 2014, 20 (2) 81-92; DOI: https://doi.org/10.3905/jsf.2014.20.2.081
Vikas Srivastava
is an associate professor at the Indian Institute of Management in Lucknow, India.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: vikas.srivastava@iiml.ac.in
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Click to login and read the full article.

Don’t have access? Click here to request a demo 
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600

Abstract

For large, capital-intensive infrastructure projects, project finance is an attractive financing alternative. The project finance structure attracts high leverage and allows for optimal sharing, allocation, and mitigation of risk among the project parties, equity providers, and financiers. In an ideal situation, the contractual bundle quarantines the developers and financiers. In India, because of a lack of other long-term sources of debt, it is bank credit that funds infrastructure projects. These projects have a higher marginal default rate in the construction period. In India, it is difficult to mitigate regulatory and political risks, particularly risks related to land acquisition and environmental clearances for a project to start. These risks compound the problems of early default and lead to deterioration of asset quality on the books of the banks. Thus, banks have to bear higher capital charges to comply with Basel II norms. This article argues that in uncertain regulatory/political/legal macro-environments, where optimally priced risk mitigants are not available, the use of project finance bank loans to fund highly leveraged infrastructure assets must be reconsidered.

  • © 2014 Pageant Media Ltd
View Full Text

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Structured Finance: 20 (2)
The Journal of Structured Finance
Vol. 20, Issue 2
Summer 2014
  • Table of Contents
  • Index by author
Print
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Structured Finance.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Project Finance Default in India: Implications for Bank Loans to the Infrastructure Sector
(Your Name) has sent you a message from The Journal of Structured Finance
(Your Name) thought you would like to see the The Journal of Structured Finance web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Project Finance Default in India: Implications for Bank Loans to the Infrastructure Sector
Vikas Srivastava
The Journal of Structured Finance Jul 2014, 20 (2) 81-92; DOI: 10.3905/jsf.2014.20.2.081

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Project Finance Default in India: Implications for Bank Loans to the Infrastructure Sector
Vikas Srivastava
The Journal of Structured Finance Jul 2014, 20 (2) 81-92; DOI: 10.3905/jsf.2014.20.2.081
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
    • Abstract
    • PROJECT FINANCE: A SUB-CLASS OF SPECIALIZED LENDING
    • PROJECT FINANCE CREATES VALUE FOR INFRASTRUCTURE ASSETS
    • BASEL II AND PROJECT FINANCE
    • SUPERVISORY SLOTTING CRITERIA
    • APPRAISAL AND RISK ASSESSMENT OF INFRASTRUCTURE LOANS BY BANKS
    • ANALYSIS OF PROJECT FINANCE BANK LOAN DEFAULT DATA
    • CONCLUSION
    • APPENDIX
    • ENDNOTE
    • REFERENCES
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • Restructuring Project Finance Bank Debt in India: Information Asymmetry and Agency Costs
  • Google Scholar

More in this TOC Section

  • Highlights from Structured Finance Association (SFA)
  • Highlights from Global Capital
  • Editor’s Letter
Show more Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1551-9783 | E-ISSN: 2374-1325

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy