Foreign investors are allowed up to 100% equity in companies involved in power generation, distribution and transmission. Inspite of the liberalising the power sector in 1991, generation capacity has not increased. The Government is trying to address this issue and is taking steps to reduce the red tape and bureaucracy in this sector.
Our services include assistance in procuring and completing the tender forms, complying with all the requirements therein and liaising with the Government authorities. We also assist in the review and drafting of Power Purchase Agreements.
Project Finance Documentation
Majmudar & Partners has a team of experts to assist overseas corporations in structuring their project. We act for many leading financial institutions and regularly draft and review loan agreements, escrow agreements, guarantees, mortgage and hypothecation deeds, and other similar documents. Further, our senior partner, Mr. A. K. Hirani, has extensive experience in project finance transactions.
Majmudar & Partners has experience in drafting turnkey contracts. On account of the application of works contract tax to such contracts, it is advisable to break such contracts into three or four separate agreements, namely, supply agreement, erection agreement and engineering agreement. We have advised clients on these issues and have drafted the necessary agreements.
Majmudar & Partners has experience in drafting O&M contracts.
Roads and Ports
Various State Governments have opened up for development minor ports and motorways on the “Build, Own, Operate and Transfer” basis. We have advised clients on this and other similar schemes.
Majmudar & Partners has assisted clients in negotiating concession agreements. Land acquisition is the biggest hurdle to the successful negotiation of these agreements. Many times, the Government announces tenders for projects without having acquired the land required for the project. Therefore, developers have to be careful in this regard and must conduct their own due diligence, both financial and legal.
Oil and Gas
The New Exploration Licensing Policy (“NELP”)
The Indian Government has recently announced the NELP whereby crude oil exploration has been opened up for foreign participation. As a result, activity in this area is on the increase. Majmudar & Partners has advised clients on this policy and the legal framework in this area.
Majmudar & Partners has reviewed oil exploration contracts and has advised on Indian contract law relevant to such contracts. We have also assisted in land title searches in this regard.
The Indian Government is in the process of divesting its stake in state owned airlines. In addition, foreign investors have been invited to construct airports in various Indian cities on BOOT basis. A clear policy for setting up private airlines with foreign equity ownership is being formulated. Majmudar & Partners has advised various companies on the Government policy in this area.