ARB Infra Ltd. (Indian Company) is a Bombay based listed infrastructure company listed on both BSE and NSE. The Indian Company has expertise in constructing roads, canals, houses and apartments in India and abroad. The Government of Chhattisgarh has recently floated a tender for construction of a dam (Project) in the state. Bid was invited from the firm(s) who have capacity to deliver the project and who have an experience of at least 3 years in delivering similar kinds of projects. Since, the Company didnt have the prior experience, it joined hand with ADIA Infra (French Company), a French company having several decades of experience in constructing dam and entered into a joint venture by forming a joint venture company (hereinafter, the JV Company) with Indian Company having 51% equity stake and the French Company with 49% equity stake. As per the JV agreement, technical know-how and support shall be provided by the French Company and finance shall be arranged by the Indian Company. As a condition to the bid application, JV Company is required to submit a certificate for a blocked amount of INR 175 crores along with fulfillment of other requirements.

The JV Company requires INR 4,200 crores for the construction of the dam including the sum needed to make the application. Indian Company agrees to invest INR 200 crores through the equity capital for acquiring 51% equity stake. The rest of the amount should come from an external financing mode. Assuming that no single lender including equity holder agrees to commit for the whole amount, discuss the different modes of funding common to project financing. What are the nature and modalities of such finance?