The Reserve Bank of India issued amendments to its 2025 Directions on credit facilities for All India Financial Institutions, clarifying how project finance rules apply to multi-unit projects and certain electricity generation projects. The changes allow an AIFI, at its discretion, to finance independent viable units within a larger project as separate projects, and clarify how right of way requirements should be assessed for electricity generation projects that also include transmission, or evacuation, infrastructure. Under the amendment to paragraph 39, separate financing is permitted where a project can be operationalised as multiple independent viable units, provided each unit has its own financial closure and is appraised in advance for standalone viability. The amendment to paragraph 41 specifies that, for electricity generation projects whose scope includes both generation and transmission, the right of way requirement for the transmission component may be determined in line with sub-paragraph (3). The amendments took effect immediately.
Reserve Bank of India2026-07-15
Reserve Bank of India amends credit facility rules for all India financial institutions, allowing separate financing of viable project units and clarifying power project right of way tests
The Reserve Bank of India amended its credit facility directions for All India Financial Institutions to clarify project finance treatment in two areas. AIFIs may now finance independent viable units within a larger project as separate projects if each is independently appraised and financially closed, and the rules also clarify right of way assessment for electricity generation projects that include transmission infrastructure. The changes apply immediately.