Spv and infusing funds in to spv

Hello Ca Club,

this is satish, an analyst in energy sector. i got a question... how do we benefit by setting up a SPV ( POWER PLANT)?

can we open  different SPV's for infusing funds in to X  company ?

is there any tax benefit involved in it ?

please do clarify........

 

 

thanks & regards,

satish

Replies (2)

SPV is a company usually (or other entity like partnership firm) for a specific purpose (means narrow scope in MoA) with the intention to make it stand on its feet independent of sponsoring company (parent company).

 

Its benefits are - Hiving off assets required for specific purpose, increase investor-attractiveness, keep operations separate from parent company, fewer risks, enable raising of funds by securitisation of assets.

Thank you.

I MEAN TO SAY THAT IF WE START A SMALL COMPANY  X  AND INFUSE FUNDS IN TO ABC.

WHERE IN ABC HUGE CAPITAL IS REQUIRED.

LIKE WISE INFUSING FUNDS BY OPENING NEW COMPANIES WITH A SHARE CAPITAL OF 1 LAKH ARE THERE ANY TAX ADVANTAGES.

 

ONCE AGAIN THANKS

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