The Hindu Business Line : RBI eases norms for infrastructure financing

Mumbai April 12 An infrastructure project that requires bank finance can now delay production by a year from the scheduled date of completion. The loan will be treated as a substandard account if the delay is beyond a year.

Earlier infrastructure projects were given a six months extension.

"If the date of commencement of commercial production extends beyond a period of one year after the date of completion of the project, as originally envisaged, the account should be treated as sub-standard. The revised instructions come into force with effect from March 31," said an RBI notification.

Factorsbeyond the control of the promoters may lead to delays in project implementation and involve restructuring or re-schedulement of loans by banks. "Accordingly, it has been decided to partially modify the asset classification norms for infrastructure projects alone, involving time overrun."

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