DBS is shaping project financing for India’s next phase of infrastructure growth

The Asset speaks to Rajiv Vishwanathan, DBS’ Executive Director of Project Finance, about the bank’s role and experience in, and views on, infrastructure and project financing in India, one of the world’s and Asia’s fastest-growing economies.

DBS has been active in structuring large-scale project financing across Asia. What differentiates DBS’ approach when evaluating Indian infrastructure projects in terms of risk assessment, project governance and sponsor quality?   

DBS differentiates its approach to evaluating Indian infrastructure projects through an integrated framework that combines deep local market understanding, sector-specific expertise and robust structuring capabilities, ensuring appropriate risk allocation among stakeholders.

Rajiv Vishwanathan, Executive Director, Project Finance, DBS Bank

DBS has over 30 years of experience in India across 19 states. DBS’ risk evaluation in India is distinct due to the maturity of its local operations as a wholly-owned subsidiary, allowing for a strong appreciation for “on-ground” nuances that differs from its regional advisory roles. Equally, DBS has adapted financing frameworks from mature markets to provide tailored solutions in India.

Execution risk, land acquisition and regulatory processes remain recurring themes for investors in India. How does DBS mitigate these challenges, and what improvements would help enhance project viability?

DBS Bank utilises a multi-layered framework for assessing Indian renewable energy and energy transition assets, emphasising ESG alignment, risk allocation, and structural mitigants for intermittent technologies. This involves a meticulous evaluation of critical project factors, including land acquisition, multi-party construction, cost modelling, and contingency planning.

As India’s renewable energy sector expands, the focus has shifted from capacity building to optimising technology, resources, and grid integration. DBS rigorously analyses project schedules and contingencies to mitigate knock-on effects from grid delays and the financial impact of curtailment, highlighting the importance of sponsor experience in land acquisition and resource optimisation for hybrid projects.

The evolution towards hybrid projects and flexible dispatch necessitates a shift from fixed-tariff power purchase agreements to managing merchant risk and evaluating dispatch profiles. DBS employs structured risk rating models and comprehensive credit assessments to manage counterparty exposure and project finance risks, particularly when analysing uncontracted capacity and fluctuating cash flows driven by real-time supply-demand dynamics.

Private credit and non-bank lenders are becoming more active in infrastructure and core-plus assets. How does DBS view the role of alternative lenders in complementing traditional bank financing, especially for brownfield expansions and mid-market sponsors?

Asia continues to rely heavily on banks for infrastructure funding, especially for large-scale renewable energy, with banks providing up to 80% of credit in many markets. However, private credit funds are gaining traction, offering bespoke solutions that complement traditional bank lending. Companies now have diverse financing options, including bank loans, private credit, capital markets, blended and transition finance. No single funding source can meet the immense demand. International banks play a crucial role in shaping global expertise, facilitating co-lending and risk-sharing, bridging global investors with local assets and providing green finance. DBS exemplifies this by collaborating with Indian non-bank financial institutions to mobilise capital for infrastructure projects.

Foreign investor participation in infrastructure has strengthened, especially through InvITs, sovereign funds and global infrastructure managers. How is DBS seeing international capital interact with domestic funding sources, and where does the bank fit within this blended financing ecosystem?

India’s energy transition – balancing security, affordability and decarbonisation – has made its pathway highly investable and influential, attracting significant foreign and domestic capital. Foreign investment in Indian infrastructure has evolved into a complex ecosystem involving InvITs, sovereign wealth funds, and global asset managers. The World Bank ranks India among the top five countries globally for private infrastructure investment among low- and middle-income economies.

This shift is driven by infrastructure development, manufacturing, and digitalisation, leading to sustained long-term power demand. Investment focus is moving towards a system-wide view, including transmission, grid flexibility, storage, and demand-side solutions. International banks such as DBS can play a crucial role by mobilising capital, structuring risk, and connecting ecosystems. DBS’s expertise in supporting transition pathways across Asia can be applied to India, including areas such as the early retirement of thermal assets.

As a strategic partner, DBS also leverages its strong balance sheet, credit ratings, and Asian insights to tailor products and solutions for financial institutions, including financial sponsors, fund managers, and sovereign wealth funds, helping them manage and capitalise on regional market conditions and evolving banking needs.

This article was first published in The Asset’s India Special Report 2026