Economics · Infrastructure Financing
In infrastructure financing, a Special Purpose Vehicle (SPV) is created mainly to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Avoid regulatory approvals
- 2Increase equity participation automatically
- 3Isolate project risks and ensure ring-fencing of cash flows✓
- 4Reduce taxation burden of promoters
Correct answer
Isolate project risks and ensure ring-fencing of cash flows
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