The legal due diligence process helps in identifying the key legal risks and provides for mitigation strategies.
The Indian infrastructure sector is one of the most significant drivers of the Indian economy. It is a cornerstone for India to reach its ambitious target of being a 10 trillion economy by 2030-35. The infrastructure sector includes various industries such as power (including renewables), oil and gas, roads and transportation, railways, ports, aviation, urban infrastructure, telecom, etc. Being a “public good”, infrastructure projects in India are regulated and sector-specific regulatory bodies have been established to administer the planning, development, and execution of such projects. Development and operation of projects typically requires various regulatory approvals and compliances. Infrastructure projects also involve various stakeholders – developers, lenders, EPC contractors, operation and maintenance service providers, offtakers and in the case of public procurement and/or PPP projects, the relevant government authority issuing the tender/granting the concession. Each of these relationships are governed by appropriate contractual arrangements. The projects are usually developed and operated by a special purpose vehicle company (SPV) incorporated by the project developer for implementing the project.
Please click here or refer to the below document to read the full article by Megha Arora, published in Legal Era Online.
Megha is a Partner in the general corporate and M&A practice of JSA, with special focus on the projects and energy sector. She has over 18 years of experience in this vertical.