Project Finance

PROJECT FINANCE INTRODUCTION With a view to harnessing advancements in S&T to economic tuition, GoI laid emphasis on industrialization finished successive Five Year Plans. Rapid industrial development needed massive investment. Prior to independence, there were no institutional arrangements for term finance. INTRODUCTION GoI, therefore, established financial institutions: the following Indl. Finance Corporation of India (1948) Indl. deferred payment & Inv. Corpn. of India (1955) Indl. Development Bank of India (1964) & Indl. Reconstruction Bank of India (1971) Similarly, State Governments besides established SFCs in their respective states. INTRODUCTION For long, commercial banks confined their lendings to set up WC requirements only and they did not play any active routine in extending term finance. However, with increasing proportion of destination Deposits in their deposit portfolio and the paucity of resources in the country, it was felt that banks could enter the topic of term finance, in a role complementary to that of Term Lending Institutions. PROJECT BACKGROUND The purpose of term assistance is to satisfy a part of the capital pulmonary tuberculosis of a cast off.

A project can be defined as A scheme of things to be done during a specified plosive in future for deriving expected benefits under accepted assumed conditions. A project may be in the nature of setting up a new industrial unit, modernisation, expansion, diversification and promotion of R&D. PROJECT BACKGROUND To set up a project, certain capital expenditure needs to be incurred in acquiring assets such as L&B, P&M and other infrastructural facilities like roads, water supply, railway sidings, etc., in addition to the Preliminary / Pre-Operative Expenses and margin on WC Limits. Where promoters of a project are unable to meet the entire capital expenditure out of their own resources, Term Loans are sanctioned to appendix the promoters contribution. PROJECT BACKGROUND Promoters of an industrial... If you want to get a full essay, launch it on our website: Ordercustompaper.com

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