The Reserve Bank of India has issued a second amendment to its 2025 directions on credit facilities for non-banking financial companies, adding clarifications on project financing and electricity sector projects. The changes explain when NBFCs may treat parts of a larger project as separate financings and how the right of way requirement should be applied where a power project includes transmission infrastructure. Under the amendment, an NBFC may, at its discretion, finance multiple independent viable units within a project as separate projects with their own financial closure, provided each unit is appraised ex ante for standalone viability. The amendment also clarifies that, for electricity generation projects whose scope covers both generation and transmission, including evacuation infrastructure, the right of way requirement for the transmission element may be determined under sub-paragraph (3). The amendments take effect immediately.
Reserve Bank of India2026-07-15
Reserve Bank of India amends NBFC credit facility rules for multi unit projects and power transmission right of way
The Reserve Bank of India has amended its NBFC credit facilities directions to clarify two project finance issues. NBFCs may finance independently viable units within a project as separate projects if each is appraised for standalone viability, and power projects combining generation and transmission may apply the transmission right of way test under sub-paragraph (3).