Question
Under the RBI’s 2025 Credit Facilities Directions for
All India Financial Institutions, what minimum threshold of land or right-of-way must be secured before lenders can grant financial closure to a PPP infrastructure project?Solution
As per Reserve Bank of India (All India Financial Institutions – Credit Facilities) Directions, 2025 An AIFI shall ensure availability of sufficient land / right of way for all projects before disbursement of funds, subject to the following minimum requirements: (1) For infrastructure projects under PPP model – 50 per cent (2) For all other projects (non-PPP infrastructure, and non-infrastructure including CRE & CRE-RH) – 75 per cent (3) For transmission line projects – as decided by the AIFI
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