Firm arrangement of finance requirement relaxed for mega projects when in-principle sanctions and promoter guarantee conditions are met. Debt funding from financial institutions/banks qualifies as a firm arrangement of finance only upon final sanction letters. For specified mega projects, clause 2.8 is treated as complied with if in-principle sanctions are obtained, promoters provide legally enforceable undertakings/guarantees limited by a capped percentage of their measurable unencumbered net worth (certified by statutory auditors), the undertaking is included among material contracts for inspection, lead merchant bankers verify promoters' adequacy and capability, and the offer document fully discloses how such verification was satisfied.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Firm arrangement of finance requirement relaxed for mega projects when in-principle sanctions and promoter guarantee conditions are met.
Debt funding from financial institutions/banks qualifies as a firm arrangement of finance only upon final sanction letters. For specified mega projects, clause 2.8 is treated as complied with if in-principle sanctions are obtained, promoters provide legally enforceable undertakings/guarantees limited by a capped percentage of their measurable unencumbered net worth (certified by statutory auditors), the undertaking is included among material contracts for inspection, lead merchant bankers verify promoters' adequacy and capability, and the offer document fully discloses how such verification was satisfied.
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