"There is a demand from the industry for refinance of existing projects. RBI will come out with the guidelines soon," Mundra said at a CII interaction here.
He said new projects would get the scope for refinance every five years till the economic life of the projects as already declared.
"But for existing projects, the guidelines will be out soon," he said.
Sounding a word of caution on big projects having thin equity, Mundra said, "There are many projects based on thin equity. This is like skating on thin ice."
He said that when economic growth is robust, suchprojects carry on as many of the ills are taken on stride.
"But when growth falters, signs of early distress crop in ... RBI is keeping a vigil on projects which are having thin equity to see whether there are signs of early distress," Mundra said.
Ahead of the RBI central board meeting here on Thursday, Mundra said the regulator was keeping its ears close to the ground.

Mundra said, "We are at a time when there is deflation, oil and commodity prices are down and food prices softening".
"There is room for softening of stance in the coming period," he said.
But he gave a rider saying "some uncertainties will always remain like the level of inflation, how will it move."
Mundra said the entire monetary policy of RBI was based on five pillars.
He said more players would be allowed in the market and licenses to payments bank and small finance bank would be issued in March or April.
Inflation targetting was the major issue with RBI for which there is shift from wholesale price index (WPI) to
consumer price index (CPI), he said.

The central bank had also gone for liquidity calibration to ensure that there was no volatility in the system, the RBI deputy governor said.
Financial inclusion was also a major plank for RBI and it was not merely opening of new accounts, he said.
Mundra also advised businesses to come out of the quarter-to-quarter syndrome by taking unsound decisions which could be detrimental in the long run.

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