Bengaluru, June 20 -- The Reserve Bank of India's latest move on project financing has sparked a rally in power sector financiers. The revised rules are notably softer than expected, offering relief to lenders and investors alike. While the finer details reveal deeper implications, the shift clearly marks a positive turn for infrastructure funding.

New RBI Rules Shares of power sector financiers like PFC (6.3%), REC (4.4%), and IREDA (4%) rose after the RBI announced easier project financing rules. These final guidelines are less strict than the earlier draft proposal, which had suggested higher provisioning requirements that would have hurt the financials of lenders like PFC and REC.

Now, during the construction phase, financiers must ...