In projects financed under consortium arrangements, where the aggregate exposure of the participant lenders to the project is upto ₹1,500 crores, no individual lender shall have an exposure which is less than 10% of the aggregate exposure. For projects where aggregate exposure of lenders is more than ₹1,500 crores, this individual exposure floor shall be 5% or ₹150 crores, whichever is higher.
A project finance account classified as ‘standard’ in the books of REs shall continue to be classified as ‘standard’ on account of extension of DCCO and consequential shift in repayment schedule for equal or shorter duration (including the start date and end date of revised repayment schedule) under the following conditions:
Reason for Extension of DCCO | |||
|---|---|---|---|
Exogenous Risks | Endogenous Risks | Litigation (Court cases) | |
Allowable deferment of DCCO from the DCCO originally envisaged in the financing agreement | Upto 1 year (including CRE projects) | Upto 2 years for Infrastructure Projects
Upto 1 year for Non-infrastructure Projects (excluding CRE projects) | Upto 1 year (including CRE projects) |
Provided that, the above ‘standard’ asset classification benefit would be subject to satisfaction of all relevant prudential conditions specified in Part H in Chapter 1 of these Directions.
Provisioning for Standard Assets
Construction Phase: A general provision of 5% of the funded outstanding shall be maintained on all existing as well as fresh exposures on a portfolio basis.
Operational Phase: Once the project reaches the ‘Operational phase’, the above provisions specified at paragraph 33 above, can be reduced to 2.5% of the funded outstanding. This can be further reduced to 1% of the funded outstanding provided that the project has (a) a positive net operating cash flow that is sufficient to cover current repayment obligation to all lenders, and (b) total long-term debt of the project with the lenders has declined by at least 20% from the outstanding at the time of achieving DCCO
Provisioning for DCCO deferred accounts
For accounts which have availed DCCO deferment as per Part J of this Chapter and are classified as ‘standard’, and wherein the cumulative deferments are more than 2 years and 1 year for infrastructure and non-infrastructure projects respectively, lenders shall maintain additional specific provisions of 2.5% over and above the applicable standard asset provision as at paragraph 33 above. This additional provision of 2.5% shall be reversed on commencement of commercial operation.
Timelines for compliance
- The provisioning of 5% for Standard Assets during construction phase shall be achieved in a phased manner as per the following timeline:
(i) 2 per cent – with effect from March 31, 2025 (spread over the four quarters of 2024-25)
(ii) 3.50 per cent – with effect from March 31, 2026 (spread over the four quarters of 2025-26)
(iii) 5.00 per cent – with effect from March 31, 2027 (spread over the four quarters of 2026-27)
Individual therapy
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Group therapy
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Family therapy
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