Question
What is a special purpose vehicle (SPV) in project
finance?Solution
A special purpose vehicle (SPV) is a company that is established specifically for the purpose of carrying out a particular project. The SPV is typically used to isolate the risks and liabilities associated with the project from the sponsor's other business activities. The SPV is usually owned by the project sponsors, but may also include other stakeholders such as lenders, investors, or contractors. The SPV is responsible for entering into contracts, raising financing, and managing the project's operations. By isolating the project's risks and liabilities in a separate legal entity, the project sponsors can limit their exposure to potential losses and reduce the impact of the project's failure on their other business activities.
What was the total loan amount approved under Kalaignar Kaivinai Thittam?
Who was elected president of The Indian Newspaper Society, an apex body of Publishers of Newspapers, Magazines & Periodicals in the country, for the...
Where is the first-ever global partner roadshow "Confluence: Where Energy and Opportunity Converge" organized by Oil India Limited?
What major announcement was made regarding the CISF?
Which of the following Indian origin professors has recently been conferred the Global energy Prize?
Who has been appointed as the President of Basketball Federation of India?
How many tons of Bio-CNG does Gwalior's CBG plant produce daily?
According to the Reserve Bank of India's Economic Activity Index ( EAI ) , what is the projected Gross Domestic Product ( GDP ) growth for Q3 2023 - 24?
Which bank has launched 'Mobile Handheld Devices for its financial inclusion customers in a bid to enhance accessibility and convenience & will provide ...
Which of the following states is the cleanest among states having more than 100 urban local bodies?