PF Archive


01 12 2000

Contractual Framework The contractual framework of a project allocates risks between the various commercial parties and determines the risk profile that will be presented to the projects's proposed lenders. The list of major contracts for projects include: Concession agreement, licence or mineral lease; Construction contract or a development management agreement; Supply agreement; Sales agreement; Operating agreement. Other major contracts may exist in any particular project depending on the structure adopted. Governmental Approvals The Borrower would have to obtain certain statutory and non-statutory clearances required for projects like Techno Economic Clearance, Pollution, Environment and Forest Clearance, Company Registrations, financing and land availability/concession etc. The promoter while making the application to the financial institutions files copies of documents most important of which are: (i) Copy of letter of allotment of plot/sale deed in favour of the Borrower for the plot. (ii) Detailed plan of building approved by the local body. (iii) Partnership Deeds/Articles of Associations and Memorandum etc. (iv) Certificate of incorporation. (v) Balance sheet and profit and loss account. (vi) Copy of project report. In large infrastructure projects concessions for land lease from Indian/State Government Authority are usually required. Often the State Government co-sponsors the project company for facilitation of...