Lok Sabha Question No. 3710 (UNSTARRED), answered on 2026-03-16
Subject: Project Finance and Loan Restructuring based on TEV Reports
Ministry: FINANCE
Asked by: Shri Laxmikant Pappu Nishad

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 3710

ANSWERED ON MONDAY, MARCH 16, 2026/ PHALGUNA 25, 1947 (SAKA)

## Project Finance and Loan Restructuring based on TEV Reports

## 3710. SHRI LAXMIKANT PAPPU NISHAD:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government is aware that State Bank of India (SBI), Punjab National Bank (PNB), Bank  of  Baroda  (BOB)  and  Canara  Bank  have  instances  of  project  finance  and  loan restructuring,  relied  upon  Techno-Economic  Viability  (TEV)  reports  prepared  internally  or through subsidiaries entities instead of independent third-party consultants, despite RBI Master Directions  on  Frauds  and  RBI  Project  Finance  Directions,  2025  mandating  arm's-length feasibility assessments;
- (b) if so, the details thereof;
- (c) whether  preparation  of  TEV  reports  covering  assumptions,  Debt-Service  Coverage  Ratio (DSCR), Internal Rate of Return (IRR), break-even and sensitivity analysis-by lending bank creates a conflict of interest, as the same institutions subsequently appraise and sanction such loans, if so, the details thereof;
- (d) whether the Government has examined the role of such non-independent feasibility studies of stressed assets and NPAs in banks, if so, the details thereof;
- (e) whether TEV requirements were diluted in large for greenfield projects, if so, the details of accountability fixed, bank-wise; and
- (f) the corrective measures proposed to mandate independent feasibility assessments and ensure strict separation between evaluation and lending functions?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (d) As informed by Reserve Bank of India (RBI), Reserve Bank of India (Project Finance) Directions, 2025 - now subsumed under the Reserve Bank of India (Commercial Banks - Credit Facilities)  Directions,  2025  dated  November  28,  2025  -  prescribe  undertaking  of  a  technoeconomic viability (TEV) study only in cases of a shift in the appointed date of infrastructure projects under the PPP mode where the aggregate exposure of all lenders is Rs.100 crore or more. The  appointment  of  TEV  consultants  is  undertaken  in  accordance  with  the  Board-approved policies of the respective banks.

Further,  as  informed  by  major  Public  Sector  Banks  (PSBs),  TEV  evaluation  and  vetting  are independent of the loan appraisal/processing  team,  and  both  functions  operate  separately  with defined roles in line with the banks' internal credit governance framework.

This  is  in  compliance  with  Reserve  Bank  of  India  (Commercial  Banks  -  Credit  Facilities) Directions, 2025 dated November 28, 2025.

(e) TEV studies for any project including that for Greenfield projects are stipulated by the Banks in accordance with their Board-approved policies.

(f)  As  informed  by  major  PSBs,  independent  feasibility  assessments  and  separation  between project evaluation and lending functions are already ensured through the existing framework.

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