| What does the Catch-Up provision enable the Fund Manager to do after investors achieve their hurdle? | receive up to 100% of additional profits until their profit reaches the agreed-upon share | [3] The exact commercial investor hurdle rate would be decided based on other than GoI investor’s terms and conditions for investment. [4] The exact commercial investor hurdle rate would be decided based on other than GoI investor’s terms and conditions for investment. [5] After the Investors have met their hurdle, Catch-Up provision allows Fund Manager to receive up to 100% of additional profits until their profit reaches the agreed-upon share. | 359 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | [5] After the Investors have met their hurdle, Catch-Up provision allows Fund Manager to receive up to 100% of additional profits until their profit reaches the agreed-upon share. | 13 | page=13,block=17 | 0.700 | valid |
| What does the term Junior Tranche mean in the context of an Alternative Investment Fund? | a class of units or instruments within an AIF or a scheme of an AIF that is subordinate to other class(es) of units | Junior Tranche: A Junior Tranche refers to a class of units or instruments within an AIF or a scheme of an AIF that is subordinate to other class(es) of units. Investors in this tranche may accept returns lesser than their pro-rata rights or share losses more than their pro-rata share in the investments of the AIF. [1] All terms/specifics to be finalized post on-boarding of fund manager | 43 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | Junior Tranche: A Junior Tranche refers to a class of units or instruments within an AIF or a scheme of an AIF that is subordinate to other class(es) of units. | 1 | page=1,block=4 | 0.700 | valid |
| What is a Junior Tranche within an Alternative Investment Fund? | a class of units or instruments within an AIF or a scheme of an AIF that is subordinate to other class(es) of units | Junior Tranche: A Junior Tranche refers to a class of units or instruments within an AIF or a scheme of an AIF that is subordinate to other class(es) of units. Investors in this tranche may accept returns lesser than their pro-rata rights or share losses more than their pro-rata share in the investments of the AIF. [1] All terms/specifics to be finalized post on-boarding of fund manager | 43 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | Junior Tranche: A Junior Tranche refers to a class of units or instruments within an AIF or a scheme of an AIF that is subordinate to other class(es) of units. | 1 | page=1,block=4 | 0.700 | valid |
| What is the definition of a Senior Tranche in an Alternative Investment Fund? | the highest-priority class of investment units within a structured fund or Alternative Investment Fund (AIF) | As per SEBI regulations, entities eligible to subscribe to Junior Tranche include: i. Manager or Sponsor of the AIF ii. Multilateral or Bilateral Development Financial Institutions iii. State Industrial Development Corporations iv. Entities established, owned, or controlled by the Central Government, State Government, or a foreign government, including Central Banks and Sovereign Wealth Funds 7. Senior Tranche: A senior tranche refers to the highest-priority class of investment units within a structured fund or Alternative Investment Fund (AIF). Investors in the senior tranche enjoy first claim on all cash flows and repayment obligations. Losses, if any, are absorbed by subordinated tranches before impacting the senior tranche. | 442 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | Senior Tranche: A senior tranche refers to the highest-priority class of investment units within a structured fund or Alternative Investment Fund (AIF). | 2 | page=2,block=1 | 0.700 |
| What is the goal of the First Loss Capital Protection provision? | to enhance investor confidence and mobilize further private capital in projects where perceived sectoral risks may otherwise limit participation | (For instance, if the agreed carry structure is 85:15, 15% of the distributable proceeds would go to the Fund Manager and 85% to the investor pool). *Contributions made by GoI and Major Port Authorities will not be subject to any catch- up provision. The Fund Manager, however, may negotiate catch-up arrangement with other investors (excluding GoI and Major Port Authorities). 2.7. This provision of First Loss Capital Protection is intended solely to enhance investor confidence and mobilize further private capital in projects where perceived sectoral risks may otherwise limit participation. it is to be used only as a last resort, after reasonable fundraising efforts have been exhausted and where additional support is essential to bridge risk gaps and facilitate strategic investments. 2.7. | 450 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | This provision of First Loss Capital Protection is intended solely to enhance investor confidence and mobilize further private capital in projects where perceived sectoral risks may otherwise limit participation. |
| What is the objective of the Interest Incentivization Fund? | to provide financial assistance for reducing cost of debt availed by shipyards located in India | 3. Interest Incentive Fund 3.1. The Interest Incentivization Fund (IIF) with a total corpus of ₹5,000 crore aims to provide financial assistance for reducing cost of debt availed by shipyards located in India. The IIF shall remain in force from the date of notification of the Scheme till 2036 (hereafter referred as the “Scheme Period”). | 113 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | The Interest Incentivization Fund (IIF) with a total corpus of ₹5,000 crore aims to provide financial assistance for reducing cost of debt availed by shipyards located in India. | 20 | page=20,block=11 | 0.700 | valid |
| What is the purpose of offering preferential terms in the concessional tranche? | to bridge the gap between the lower return profile of certain strategic or high-impact projects and the return expectations of commercial investors | The concessional capital from the Government of India is designed to bridge the gap between the lower return profile of certain strategic or high-impact projects and the return expectations of commercial investors. By offering preferential terms, the concessional tranche shall enable the fund to invest in projects that deliver long-term national benefits, even where immediate commercial returns may be modest, while ensuring that senior tranche investors are shielded, and their typical return expectations are met. The Fund Manager may explore potential to raise further concessional capital from Public Sector Undertakings, Multi-lateral Development Banks, Development Financial Institutions, etc. | 66 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | The concessional capital from the Government of India is designed to bridge the gap between the lower return profile of certain strategic or high-impact projects and the return expectations of commercial investors. | 14 |
| What is the purpose of the performance fee or carry for the Fund Manager? | an incentive for the Fund Manager to consistently outperform hurdle/benchmark returns | The final investment period shall be dependent on the risk appetite of other investors and fund tenor. The Fund Manager may consider the warehousing of investments, where appropriate, in accordance with the fund’s investment strategy and governance framework. ii. Performance-based fee/Carry Performance Fee/Carry serves as performance-linked incentive paid to the Fund Manager when the fund’s returns exceed a predetermined threshold, known as the hurdle rate, for all investors. This fee serves as an incentive for the Fund Manager to consistently outperform hurdle/benchmark returns. The Performance Fee shall be 15% with respect to the Government of India’s contribution and the Major Port Authorities’ contribution (if any). The final terms of appointment of the Fund Manager shall be approved by the Governing Council based on the recommendations made by the Search-cum-selection committee.2 | 500 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | This fee serves as an incentive for the Fund Manager to consistently outperform hurdle/benchmark returns. | 8 |
| What kind of team will oversee the management of the MIF? | a dedicated multi-disciplinary investment team with relevant expertise in maritime sector, fund management and/or blended finance | MIF shall be managed by a dedicated multi-disciplinary investment team with relevant expertise in maritime sector, fund management and/or blended finance. The team size shall be commensurate with the size of MIF. The MIF shall have a dedicated CEO/ Head who shall be appointed by the Fund Manager. The CEO/Head of the Fund shall have relevant experience in fund management and infrastructure financing. The investment management team of MIF shall be hired with market-linked compensation in order to attract and retain professional, high-quality talent. | 24 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | MIF shall be managed by a dedicated multi-disciplinary investment team with relevant expertise in maritime sector, fund management and/or blended finance. | 7 | page=7,block=14 | 0.700 | valid |
| What kind of tender process is outlined for financial institutions regulated by Indian authorities? | A limited tender amongst financial institutions (owned by PSUs/ Government Institutions) governed by Indian regulators | A limited tender amongst financial institutions (owned by PSUs/ Government Institutions) governed by Indian regulators shall be adopted. A proposal to this extent to be placed and appraised by the Governing Council along with the SSC. | 0 | definition | 1.000 | https://shipmin.gov.in/sites/default/files/MDF%20Guidelines.pdf | A limited tender amongst financial institutions (owned by PSUs/ Government Institutions) governed by Indian regulators shall be adopted. | 6 | page=6,block=13 | 0.700 | valid |