The core matters

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rties with the best ability to manage them at the lowest cost. This is typically achieved by way of a robust contractual architecture with contracting parties having sufficient technical and financial strength and more importantly project sponsors with satisfactory execution and operating track record.

A lot of equipment is usually imported and so there are forex needs. How are these sought to be managed?

With recent liberalisation in the financial sector, companies have been able to tap international financial markets by way of external commercial borrowings (ECB) as well as foreign currency convertible bonds (FCCB). These facilities are available in leading currencies like US Dollars, Japanese Yen, Euro's etc., which provide flexibility to the project sponsors to match the underlying project requirements.

Further, over the years, the currency and interest rate derivative market to support foreign currency funding have evolved significantly to meet the growing, long-term, hedging requirements of clients.