Assessing the Potential for Shari’ah-Compliant Project Finance in India

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India has the potential to become a prime target for international investors in areas such as power production, infrastructure and real estate development—all of which utilize project finance structures.  As a growing segment of investors follow Shari’ah-compliant financial practices, known as Islamic finance, an issue of concern is whether India’s current regulatory framework allows Shari’ah-compliant project financings to succeed.  This Note seeks to answer this question by first examining how Islamic finance principles can be tailored to project finance transactions generally and then analyzing the particularities of the Indian regulatory system to determine whether Shari’ah-compliant structures can be workably implemented.