Guest Lecture on 'Project Finance'

Management club Activity-Supply Chain, IT & Operations
April 13, 2015
Faculty Outbound Training
April 16, 2015

Date: 9 April 2015
Time: 10.30-12.30 pm

Guest: Mr R K Sinha, Ex Director Finance, Dedicated Freight Corridor Corporation of India Ltd

Topic: Project Finance

Attended by: MBA Semester IV (Project Management and Infrastructure Finance students), MBA Semester II

Mr R K Sinha has spent many years as Director Finance at Konkan Western Railways and Dedicated Freight Corridor Corporation of India Ltd.

Learning Objectives of the guest lecture

The aim was :

  • To learn project finance and risk management concepts
  • To understand financial structure, issues, complications and recommended solutions in real deals.

Mr Sinha presented a two hour long lecture for the MBA students with specific emphasis on project finance and project management. He explained the students how and why projects are created; and the difference between project finance and normal corporate/bank finance. He also highlighted various players that constitute a project be it Sponsors, EPC contractors, Suppliers, O&M Contractors and Financiers. He also explained concepts in risk management pre construction risk, construction risks and post construction risk. He highlighted that projects need to decide whether to retain the risks (and therefor create contingent liabilities) or transfer the risk (and create an actual cost). The lecture also focussed on some of the major contracts that can be used for risk mitigation.

The second half of the lecture was all about two main project finance deals that Mr Sinha has been associated with. The first being laying the railway lines for Konkan (Western) Railways. The second one being the project of Dedicated Freight Corridor Corporation of India. He explained the composition, structure, financiers, major issues that came up and solutions rendered for the two projects. It was very exciting to hear about the two live projects of India and how differently each of these projects were financed.

The lecture was well received by all the MBA students.

Faculty Incharge: Urvashi Sarup

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