India’s project finance ecosystem is undergoing a strategic transformation in 2025, driven by the RBI’s new Project Finance Directions. These guidelines, effective October 1, 2025, offer clarity on asset classification, provisioning norms, and treatment of delays, especially for large infrastructure and industrial projects. The move is expected to unlock ₹1.5–2 lakh crore in fresh lending capacity for banks and NBFCs.
Recent case studies highlight innovative structuring: a ₹600 crore refinancing for a logistics park using layered senior-secured and mezzanine tranches; a ₹150 crore CGSS-backed facility for a green energy startup; and a ₹300 crore promoter-backed bridge loan for a distressed hospitality chain. These deals reflect a shift toward hybrid instruments and sector-specific risk mitigation.
Restructuring mandates are also evolving. Lenders are increasingly using cash flow-linked repayment schedules, escrow-backed security structures, and AIF-led participation to revive stressed assets. MSMEs and mid-market corporates are benefiting from tailored solutions that blend compliance with flexibility.
